Poly maker pulls out of wafer JV with semiconductor company

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Chinese polysilicon manufacturer GCL-Poly today withdrew from a wafer-making joint venture established with semiconductor company Tianjin Zhonghuan.

GCL-Poly Energy Holdings Ltd subsidiaries Jiangsu Zhongneng Polysilicon Technology Development Co Ltd and Konca Solar Cell Co Ltd transferred their respective 18% and 12% shares in Inner Mongolia Zhonghuan GCL to JV partner Tianjin Zhonghuan.

A statement issued on the Hong Kong Stock Exchange where GCL-Poly is listed said the move would continue the poly company’s strategy of “further consolidating its product structure by investing … [in] more competitive products”.

The development means GCL-Poly units Jiangsu Zhongneng and Konca will no longer have to invest RMB288 million (US$41 million) and RMB192 million into the JV, respectively.

GCL-Poly indirect subsidiary Suzhou GCL Technology had originally committed, in May, to invest RMB800 million in the venture. That figure was revised down in July before Suzhou’s commitment was split between its two fellow GCL-Poly subsidiaries in October.

The joint venture is a 30 GW annual production capacity solar wafer manufacturing facility set up in the Inner Mongolian capital of Hohhot by GCL-Poly and Tianjin Zhonghuan. Suzhou GCL had committed to raise its stake in the project from 30% to 31.27% in June as part of a RMB9.13 billion plan to raise output capacity to 55 GW over three-and-a-half years.

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