Sun Materials manufacturing plant has a current capacity of up to 3,500 metric tons. However, Mascotte plans to expand the production line this year, and build another five plants, in order to increase capacity to 21,000 metric tons by the first quarter of next year.
To fund the acquisition, expansion plan and capital expenditure for Sun Materials, Mascotte has said it will raise approximately HK$2.8 billion by issuing shares with convertible bonds. It has also reserved the right to acquire the remaining 49.9 percent share stake of Sun Materials.
According to the Hong Kong company, Sun Materials has already secured contracts with purchasers of its polycrystalline silicon for all of its production output for 2011. It has also reportedly secured sales contracts with other domestic and international customers, with the latest contract period extending to 2021.
Commenting, Mascotte chairman, Peter Whitelam said: "It’s a significant milestone for Mascotte. Upon the completion, we will engage in the polycrystalline silicon manufacturing business, which has high growth potential as clean energy is an important topic across the world. We are glad to be part of it. Also, our technology is very competitive and low cost, which will drive massive demand in the long run. We can foresee that the business will grow rapidly and bring significant contribution to our revenue soon."
Mascotte has also established a strategic alliance with Hareon a Chinese manufacturer of photovoltaic products including ingot, block, wafers, cells and modules. Hareon has reportedly agreed to purchase polycrystalline silicon from Sun Materials after the production plant commences operations in the first quarter of this year.