The reason for the expansion is due to a number of new long-term polysilicon products and wafer supply contracts, entered into in 2010, with both domestic and overseas customers. In a statement, the company explained: "The group has to increase its capacities in order to fulfill the obligations of these long term supply contracts over the next four to six years."
Under its plans, GCL-Poly aims to increase its polysilicon capacity from 21,000 metric tons (MT) in 2010 to a minimum 25,000 MT by end of 2011. Furthermore, by the middle of 2012, this figure is expected to reach up to 65,000 MT. The company explains that new polysilicon facilities will be located in its existing Xuzhou plant in Chinas Jiangsu province.
In terms of its wafer production, the goal is to produce 6,500 megawatts (MW) by end of this year, up from 3,500 MW in 2010. The expansion will involve an increase in capacity at GCL-Polys existing plants in Xuzhou, Wuxi, Suzhou and Changzhou. Additionally, an unidentified number of new wafer plants will reportedly be established in locations close to the companys clients in China.
The statement continued: "The new investment allows the company to further expand its polysilicon capacity (which is the major raw material for its downstream wafer business) as well as its business of monocrystalline and multicrystalline wafers, which will be sold as semi-finished materials to cell and module manufacturers."
The investment will be funded by the groups internal resources and borrowings.