Longi is one of the largest monocrystalline product manufacturers in the world, and as part of the JV will seek more business opportunities for mono markets outside of China.
The two companies agreed that ET Solar will assume the role of large shareholder of the JV, with Longi providing technical support in all aspects of mono products, including raw material supply, monocrystalline module manufacturing, and quality control to ensure high efficiency of products.
The JV will focus on module sales branded as ET Solar for oversea markets, and is targeting 500 MW of high-efficiency mono modules via ET Solars current distribution channels in the first year.
However, the JV will not include the primary EPC business of ET Solar, which is growing into a key business with ET Solar.
Both companies have shown confidence in such collaboration. For ET Solar, the JV is means for the steady supply of high-efficiency monocrystalline silicon products at a fair price, thus enhancing the competitiveness of ET Solars module business and, in turn, its EPC endeavors. For Longi, the new JV is a good platform upon which to promote its mono silicon products to the world beyond China, much like the role played by Lerri Solar within the Chinese market. Another aim is to increase the entire market share of mono products, which has long been a permanent goal of Longi.
One industrial observer believes the alliance of ET Solar and Longi will rely on both firms complementing one another. ET Solar is generally regarded as a downstream player, while Longi is more upstream. Working closely with each other could lower trading costs and strengthen the competitive abilities of both companies.
ET Solar has a cumulated capacity of more than 5 GW of module shipments so far, and had successfully completed more than 1GW of solar projects by the end of 2015, while, approximately, a further 600MW will be finished within 2016.
At the end of 2015 Longi had a production capacity of 4.5 GW for both monocrystalline silicon ingot and wafer.
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