EGing to invest US$ 144 million over in manufacturing upgrades and relocation

• EGing Photovoltaic, PV maker is planning after guiding a full-year 2019 internet gain reduction, production relocation and major production upgrades to come back to competitiveness.

EGing stated it would invest approximately RMB 1.0 billion (US$144 million) at a new 3GW ingot and wafering plant in in Hohhot, Inner Mongolia after acquiring a tiny regional firm, Inner Mongolia Huayao Optoelectronics at 2019.

EGing’s existing ingot and wafering operations have been said face multiple pressures, as a result of high power costs and outdated production equipment although are established in Changzhou, China.

The company noted that it become difficult to continuingly reduce production costs and increase efficiencies as technical changes lasted in production to offset continuing cost declines.

Wafering plant and the new ingot would require to construct and start operation, according to the organization.

The company also announced plans to tackle a major revamp and update of its solar panel and module assembly operations in Changzhou to encourage its efforts to come back to a position in the business. 

EGing stated it would present the industry's most advanced equipment and production lines in its Changzhou production base whilst taking an impairment charge of approximately RMB 220 million (US$31.7 million) on fixed assets.

The company plans new monocrystalline solar panel capacity of 1.5GW and 2.5GW of module gathering capability. EGing failed to offer timelines or capital expenditure for the major production revamp, nevertheless this would consist of disposing of supplies that had high power and material consumption that is high.

Care would also be focused on increasing R&D activities. According to PV Tech’s annual R&D spending file, Eging spent only around US$2.7 million on R&D in 2018, compared to a peak of US$21.3 million in 2015.

EGing reported that it expected to make a net loss of around RMB 210 million to RMB 270 million because of the impairment charges, chiefly to the full-year 2019. Eging had reported a net profit of RMB 68.6 million in 2018. 

The company said that merchandise sales had increased by over 30 percent in 2019, compared to the previous year.