Chinese electrical equipment giant Shanghai Electric has announced its intention to acquire a 51% stake in Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd. – which is one of GCL-Poly’s major operations in China.
In a filing with the Hong Kong stock exchange, the Chinese multinational power generation company said that the valuation of the 100% equity interest of Jiangsu Zhongneng is expected total up to 25 billion CNY (around $3.9 billion).
Trading of H shares of Shanghai Electric, on the Hong Kong Stock Exchange was suspended today, as were those of GCL-Poly, at the request of both companies. A statement sets out that the suspension will be in place, “pending the release of an announcement containing inside information.”
More details about the transaction were not available at the time of publication.
Headquartered in Xuzhou, in the Chinese province of Jiangsu, Jiangsu Zhongneng is China’s largest polysilicon supplier. The unit also produces multi and monocrystalline silicon and wafers.
In late November, Jiangsu Zhongneng agreed to transfer a 20% equity interest in Xinjiang GCL New Energy Materials Technology to Shenzhen-listed Tianjin Zhonghuan Semiconductor for CNY 300 million. GCL-Poly said at the time that the proceeds from the sale would be utilized to support the construction of a polysilicon production plant in Qitai county, in China’s remote Xinjiang region. The group revealed plans to build the facility, which will have an annual production capacity of 40,000 to 60,000 MT upon completion.
According to the latest financial results published by GCL-Poly, in 2017 it produced 74,818 MT of polysilicon and 23,902 MW of wafers. The company’s annual polysilicon production capacity at the end of last was 70,000 MT, while wafer capacity reached 30 GW. Polysilicon capacity is also expected to increase, as GCL-Poly commenced construction on a new 20,000 MT production facility in Xinjiang.
Shanghai Electric entered the solar PV manufacturing business in February 2016, when it took a major stake and signed a cooperation agreement with German PV equipment supplier Manz.
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