Tianjin Zhonghuan will inject capital into Xinijnag GCL to produce polysilicon materials, according to a statement to the Hong Kong stock exchange. The unspecified investment is related to GCL-Poly Energy’s plans — announced in April — to invest roughly 5.68 billion yuan ($851.9 million) in the expansion of polysilicon production at a facility it owns in China.
The polysilicon plant in the country’s remote Xinjiang region will include 40,000 tonnes of new production capacity and 20,000 tonnes of relocated capacity from GCL-Poly Energy’s factory in Xuzhou, Jiangsu province. The first 20,000 tonnes of production capacity will be completed by the second quarter of 2018.
Shenzhen-listed Tianjin Zhonghuan may also invest in monosilicon wafer processing by taking an undisclosed stake in GCL-Poly Energy’s wafer slicing factories. In addition, GCL-Poly Energy will also invest in the production of monosilicon rods. It will take an unspecified stake in that venture and both sides may make additional investments in monosilicon rod production in the future.
Finally, GCL-Poly Energy and Tianjin Zhonghuan have agreed to jointly develop PV projects, in addition to investments in R&D and businesses related to the management of solar installations. They did not disclose additional information about this aspect of their proposed partnership, which is still subject to due diligence.
The GCL-Poly group — via various subsidiaries — actively builds solar projects throughout China. Last March, group units Suzhou GCL New Energy and GCL System Suzhou revealed plans to jointly invest 200 million yuan in the development of an undisclosed amount of PV capacity in the country.
In May, GCL-Poly reported that its polysilicon sales fell 43% on the year to 1,896 metric tons (MT) in the first quarter. It recorded a full-year profit of 2.3 billion yuan in 2016.