JinkoSolar, JA Solar align top priority polysilicon supply with Xinte deal

Jun 22, 2021 07:02 AM ET
  • 'Solar Module Super League' (SMSL) members JinkoSolar and also JA Solar are to buy polysilicon service provider Xinte Energy's 100,000 ton center in Inner Mongolia, obtaining concern accessibility to the polysilicon created because of this.
JinkoSolar, JA Solar align top priority polysilicon supply with Xinte deal
Image: Xinte Energy

A declaring issued to the Hong Kong Stock Exchange on Friday (18 June 2021) revealed the suggested deal, under which JinkoSolar and also JA Solar would certainly both invest in Xinte's Inner Mongolia Xinte subsidiary, Inner Mongolia Xinte Silicon Products, which is to house the new facility. Jinko and also JA would both hold 9% equity risks in Inner Mongolia Xinte therefore, each investing RMB315 million (US$ 48.7 million) in the project.

Under the regards to the potential deal, which undergoes authorization by Xinte's board, both JinkoSolar as well as JA Solar would certainly get top priority access to the polysilicon created at the facility. This accessibility would certainly be related to an extra definitive sales arrangement to be authorized by Inner Mongolia Xinte as well as the SMSL duo, with a supply framework readied to be signed on 18 July 2021.

All polysilicon offered to capitalists would follow existing market rates principles, however greater rates will certainly not be established for linked parties, Xinte said.

JinkoSolar validated its financial investment would be made from its Shangrao JinkoSolar Industry Development subsidiary. Kangping Chen, Chief Executive Officer at JinkoSolar, claimed the firm believed the financial investment was not just a strong growth method for the business but would certainly assist stabilise silicon supply and also reduce supply chain volatility.

"By cooperating with upstream specific suppliers, we will certainly continue to strengthen the advantages of our integrated capability and also solidify the structure for automation of high-efficiency modules year-over-year. We will continually work in the direction of great deals through deeper teamwork with our supply chain partners, and also collectively promote the development of the worldwide solar market as well as speed up the change of eco-friendly energy," he stated.

While polysilicon cost rises have stabilised in current weeks-- staying at ~ RMB206/kg (~ US$ 31/kg)-- worries remain over the sector's mid-term capability to fulfill need for the raw material.

Last week Xinte revealed plans to sell nearly 180 million shares, the considerable bulk of which are to be obtained by existing primary shareholder TBEA, in a quote to increase as much as RMB2 billion to aid increase development of the polysilicon manufacturing center in Inner Mongolia.

Building and construction of the 100,000 ton facility is slated to start this quarter and take 18 months to complete.

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