Tongwei sets sizeable solar polysilicon, cell manufacturing capacity targets following Q1 profit leap

• Solar polysilicon and cell producer Tongwei has specified strategies to dramatically boost its manufacturing capacity over the following four years after validating a six-fold increase in net profit in Q1 2022.

Earlier today Tongwei confirmed that its Q1 2022 profits amounted to RMB24.69 billion (US$ 3.76 billion), more than dual (up 132%) its efficiency in the equivalent quarter last year. This assisted the firm's internet profit soar by 513% year-on-year to RMB5.19 billion (US$ 791 million) as it took advantage of enhanced efficiencies as well as reduced manufacturing expenses.

The official outcomes disclosure properly validated preliminary forecasts published last month.

That surge in profits is to fuel Tongwei's promote greater manufacturing capacity in the coming years, with the maker also exposing details pertaining to its development plans out to 2026 in a trove of documents accompanying its 2021 annual report, released yesterday.

Tongwei exposed that it completed 2021 with around 180,000 MT of nameplate polysilicon production capacity, with an additional 170,000 MT of capacity currently under construction. Its Baotou phase 2 facility results from complete later this year, while the Leshan phase 3 facility is to commence a ramp-up in 2023.

The Leshan facility specifically is expected to offer Tongwei with better manufacturing effectiveness, minimizing its manufacturing expense per kilogramme of polysilicon produced.

Tongwei expects to complete 2023 with 350,000 MT of polysilicon capacity because of this, nevertheless those enhancements will just be the beginning of a substantial ramp-up of production across polysilicon as well as solar cells as the business bids to capitalise on broader market growth trends.

A significant velocity of capacity development in between 2024 and 2026 will certainly leave Tongwei with as much as 1 million MT of polysilicon result and up to 150GW of solar cell manufacturing capacity, more than three-times the 45GW cell capacity it ended up 2021 with, Tongwei stated.

Earlier this month Tongwei revealed prepare for a 32GW cell manufacturing facility in Sichuan, the very first 16GW phase of which is anticipated to come onstream in 2023.

That growth is to be accompanied by ongoing R&D financial investment, specifically into n-type products. Tongwei noted that it spent around RMB2.035 billion on R&D in 2021-- equal to 3.2% of earnings-- a figure which it is to keep in the coming years, with boosted support allocated for TOPCon and HJT lines.

Today has additionally seen Tongwei once again crowned as the solar sector's leading polysilicon provider by Bernreuter Research.

Last month Finlay Colville, head of market research at PV Tech, authored a piece suggesting that Tongwei-- given its setting as the sector's leading polysilicon and cell manufacturer and also establishment as US$ 10 billion turn over company-- can end up being the market's initial fully up and down integrated producer by 2025.