The new factory will be situated only eight kilometers from its current solar cell faccility and will be built in partnership with two Chinese state-owned enterprises.
Contributing about 61 percent of the capital for the project, Canadian Solar will partner the Suzhou New District Economic Development Group Corporation and the Suzhou Science and Technology City Development Co. Ltd.
After local permits are completed, the company hopes to begin construction immediately, with the full "ramp-up" target scheduled for 2012, the company said in a statement.
Canadian Solars Shawn Qu commented: "This is a major development, as we move toward more substantial wafer, cell and module integration. We will be able to put the cell production capacity in place needed to meet higher customer demand levels."
Until the new facilities are in full production, Ontario based Canadian Solar will continue to utilize third party cells versus internally produced cells in their modules. Through the new facilities and current manufacturing output, the company claimed to be on track to reach its two gigawatt production goal, from wafer to cell and module, by the beginning of 2012.