Jinko and Tongwei strengthen supply chain tie-up

Share

Chinese solar supply chain companies JinkoSolar and Tongwei today announced plans to deepen the strategic relationship they entered in February.

Jinko today said it would invest RMB450 million ($70.3 million) in a 15% stake in Tongwei subsidiary Sichuan Yongxiang Energy Technology, which is planning a 100,000 ton annual capacity polysilicon production line in Leshan, in Sichuan province, near monosilicon wafer production facilities owned by Jinko.

Once operational, the factory will supply Jinko with 30,000 tons per year of poly, under the terms of the arrangement.

“By securing this new line of clean, high-quality and highly reliable raw material, we will be able to guarantee the long-term reliability of our wafer and module production for the next few years,” said Jinko CEO Kangping Chen, in a press release issued by the company this morning. “In addition, we have also realized that the healthy and sustainable development of the PV industry is increasingly dependent on the profound cooperation among supply chain partners.”

With Jinko having agreed to buy 93,000 tons of poly from Tongwei up to 2023, in a deal signed a year ago, the two companies in February formalized a co-operation arrangement which committed Tongwei to invest in a 30% holding in a 15 GW solar wafer production joint venture with Jinko and to purchase an additional 6.5 GW of wafers from Jinko up to 2023, on top of earlier purchase agreements.

In return, Jinko agreed to take a 35% holding in a 45,000 ton polysilicon fab planned by its partner. It is not clear whether the production facility which Jinko is now set to invest in is the same as the one highlighted in the earlier arrangement.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Mercedes-Benz testing new solar paint
02 December 2024 Mercedes-Benz said it is now evaluating a 20%-efficient, non-silicon photovoltaic coating that is significantly cheaper than conventional solar module...