Solargiga invests in 1 GW of module output — correction

Jinzhou Chuanghui New Energy, a wholly owned unit of the Solargiga Energy group, will install the new production lines in facilities it already owns. Mass production is scheduled to start late in the second quarter, according to a statement to the Hong Kong stock exchange.

Solargiga Energy bought a 63% stake in Jinzhou Chuanghui New Energy last year. The indirect wholly owned group subsidiary started out producing multicrystalline wafers. However, it ultimately failed to scale up the business and has since decided to stop investing in wafer production. It will now use its old wafer plants to produce PV modules. 

The Solargiga Energy group’s monocrystalline silicon ingot and wafer business will likely reach an annual production capacity of 1.8 GW in the second half of this year. Yearly PV cell production is expected to reach 400 MW, while PV module output is set to hit 2.2 GW.

In September, the group announced plans to invest $52.8 million to annually produce 600 MW of monocrystalline silicon ingots and 600 MW of wafers at a new factory in Qujing, in China’s Yunnan province. The group said it will use some of its wafers to produce its own solar cells, but it also plans to sell some of its wafers to third-party PV cell producers. It will then buy those cells to support its own PV module production operations.

The group recorded revenue of CNY 3.96 billion in 2017, up 31.2% year on year. Its full-year shipments of PV modules, cells, ingots and wafers reached 2.4 GW, up 57.3% from the preceding year, according to unaudited results released in January.

*This article was amended on Tuesday, March 6. We initially reported that Solargiga’s revenue fell 31.2% year on year. Its revenue actually rose 31.2% on the year.