GCL-Poly investing $826m in construction of 60,000 MT polysilicon plant in China

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China’s GCL-Poly is to invest RMB 5.68 billion (US$826 million) in the construction of a 60,000 tonne polysilicon production facility in Xinjiang, China.

The project will comprise 40,000 tonnes of new capacity and 20,000 tonnes of ‘relocated’ capacity from GCL-Poly’s existing production facility in Xuzhou, which will duly be closed once the new Xinjiang facility is up and running.

GCL-Poly will finance one third of the investment with capital from internal resources, with the remainder of the funds coming via debt finance. The company said in a press statement that it is in active discussions with potential investors regarding the project, although thus far no cooperation agreements have been signed.

The first phase of construction – comprising 20,000 tonnes of capacity, is expected to be completed by the second quarter of 2018, with phase two (an additional 20,000 tonnes) penciled for completion by the end of next year.

The final phase, which would include the transfer of 20,000 tonnes production capacity from Xuzhou to Xinjiang, is scheduled to be completed by the end of 2020. Once fully completed, GCL-Poly says that its annual polysilicon production capacity will rise to 115,000 tonnes by 2020.

Lower expected energy and tariff costs in China will also enable GCL-Poly to contribute to the reduction of polysilicon production costs, the company added.

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