Xinyi Solar to go into polysilicon manufacturing with launch of brand-new entity and Yunnan-based center

• Solar producer Xinyi Solar is to branch out into polysilicon manufacturing, introducing a joint endeavor to establish a manufacturing base in Yunnan, China, with a preliminary ability of 60,000 metric tons (MT).

In a declaration released to the Hong Kong stock exchange late recently, the boards of both Xinyi Solar and also Xinyi Glass confirmed that they had accepted establish Xinyi Silicon, an entity 52% possessed by Xinyi Solar, to create polysilicon manufacturing centers in China.

Under the joint venture contract, the two companies are to provide funding of up to RMB3.3 billion (US$ 517 million) to finance the construction of polysilicon production centers in Qilin District, Qujing City, Yunnan District.

The center is anticipated to have a first production ability of 60,000 MT each year, nevertheless the business have actually specified this could be consequently enhanced to 200,000 MT each year via the conclusion of additional stages.

It's anticipated that Xinyi Silicon is to invest some RMB6 billion, with any type of deficiency anticipated to be made up by exterior resources of money.

Qujing Municipal Government has actually meanwhile agreed to provide numerous policy and also administrative assistances to Xinyi, including the purchase of land rights and building works.

Xinyi's launch of a polysilicon production device comes at a time of highly inflated polysilicon costs, driven by need far outstripping in supply throughout a lot of this year. While new manufacturing capability is expected to find onstream throughout 2022, the majority of projections have polysilicon costs staying somewhat high long right into following year, only normalising in H2 2022 and also beyond.