Tongwei secures added 1 billion wafer supply from LONGi as targets over 40GW cell capacity in 2021

• Major polysilicon as well as merchant cell manufacturer, Tongwei has actually protected a monocrystalline wafer supply offer from LONGi Green Energy (LONGi Group) that increases its wafer needs by 1 billion wafers to 2.6 billion as the cell producer intends to have more than 40GW of solar cell capability in 2021.

Previously, Tongwei as well as LONGi became part of a wafer supply arrangement that consisted of LONGi providing 1.4 billion wafer in 2020, 1.6 billion in 2021, and 1.8 billion in 2022 as part of Tongwei's aspirations of attaining internal solar cell capability of 60GW by the end of 2022.

The substantial boost in the wafer supply contract comes inline with Tongwei's updated ability growth plans outlined in its initial fifty percent 2020 monetary filings. The company noted that its Meishan Plant, Phase I, which is a 7.5 GW center capable of creating all wafer/cell dimensions including 210mm had actually been put into production.

However, 2 different cell plants, each of 7.5 GW are anticipated to get in production in 2021, which include the Meishan Phase II plant and also the Jintang Phase I plant.

At the end of 1H 2020, Tongwei said it had accomplished complete solar cell capacity of 27.5 GW, that included monocrystalline cell capability of 24.5 GW.

Formerly, Tongwei had actually prepared ability expansions to reach 40GW in 2020, based on market demand, then boosting to 60GW in 2021. Weak need in the 1H 2020, as a result of the effect of COVID-19 on procedures as well as international market conditions implied Tongwei experienced cell ASP decreases of around 30%, according to the company.

Complete solar cell deliveries in the 1H 2020 were 7.75 GW, a 33.75% rise from the previous year duration. However, as a result of ASP declines, earnings was around RMB 5.84 billion (US$ 855 million), a 0.22% increase, year-on-year.

In 2019, Tongwei generated earnings of 12.271 billion (US$ 1.795 billion) from solar cell and also PV component sales, a year-on-year boost of 60.56%. The sales volume was 13.33 GW, a year-on-year rise of 106.92%, and a gross profit margin of 20.33%.