Jolywood signs agreement to establish 100,000 MT polysilicon project in northern China

• Chinese module manufacturer Jolywood Solar has actually authorized an agreement with the government of Taiyuan City, Shanxi Province to build a high-purity, solar-grade polysilicon manufacturing facility as it tries to balance out rising raw material expenses and also push for greater vertical combination.

The facility in the north of China will have will have an annual production capacity of 100,000 MT for polysilicon and 200,000 MT for silicon metal when fully completed.

It will certainly be integrated in two stages, taking five years to finish. Jolywood estimates it will certainly set you back around RMB14 billion (US$ 2.22 billion).

The two celebrations will form a joint venture (JV) company to take care of the project, which will certainly be 51% had by Jolywood.

The financial investment is Jolywood's initial participation in polysilicon production and is based upon the company's tactical advancement demands and also an assessment of market problems progressing, Jolywood stated in a securities market notice.

Jolywood wishes the investment can counter cost stress triggered by the rising expense of polysilicon, which has risen in the past 2 years as well as currently stands at RMB243/kg, according to PV InfoLink.

The very first phase of the project will begin this year, expense RMB4.3 billion (US$ 667 million) and will have a production capacity of 200,000 tons of industrial silicon as well as 10,000 tons of high-purity polysilicon. Jolywood claimed it will come online by 2024. The 2nd phase will certainly depend upon market conditions, the maker stated.