Longi had been planning to build a new 5 GW ingot facility on its own, but has now brought on board two more Chinese companies to reduce risk for this huge venture. Longi, already the world's largest mono wafer manufacturer, has big plans to expand its wafer and ingot production capacity to 20 GW by 2019. (photo credit: Longi)
- Longi, Trina Solar and Tongwei of China have agreed to construct, own and operate a 5 GW monocrystalline silicon ingot production facility
- The factory will be constructed by a joint venture
Longi, Trina and Tongwei will own 60%, 25% and 15% stake in the JV, respectively
- In a differenet venture, Longi agrees with Comtec Group to purchase the latter's monocrystalline silicon ingot/wafer production facility in Malaysia
Three Chinese solar giants are coming together to start a 5 GW monocrystalline silicon ingot production plant. Xi’an Longi Silicon Materials Co. Ltd. had earlier planned to start the facility on its own. Now it has brought on board two more partners, Trina Solar and Tongwei Group to reduce the investment risk.
The three companies will jointly construct, own and operate the 5 GW facility. Longi’s share in the joint venture will come to 60% wherein it will contribute RMB 480 million ($69.3 million). Trina will hold 25% stake adding RMB 200 million ($28.8 million) and Tongwei Group through its subsidiary Yongxiang Co., Ltd. will put in RMB 120 million ($17.3 million) owning 15% of the JV.
As part of its future plans, Longi aims to increase its ingot as well as wafer production capacity to 20 GW by 2019, from 7.5 GW in 2016. Longi is the world’s largest monocrystalline ingot/wafer producer and also has a cell manufacturing subsidiary, Lerri Solar.
In a different venture, Longi will buy all equipment and related assets of Comtec Malaysia’s monocrystalline silicon production facility for RMB 200 million ($28.2 million). This was agreed by both companies and now needs to be confirmed by an extraordinary general meeting of the Comtec shareholders. A subsidiary of Comtec Solar Systems Group Limited, Comtec Malaysia was established in 2013 but has not been a profitable venture for the parent company – in the first 11 months of 2016, it posted a net loss of RMB 79.4 million. Reportedly, Comtec operates an annual production capacity of around 400 MW mono wafers in China and around 300 MW in Malaysia. Comtec’s total shipment of ingots and wafers in H1/2016 was about 166.2 MW, representing a decrease of around 15.9% from about 197.7 MW for the same period in 2015. The Group recorded losses of RMB 6.4 million during the first 6 months 2016, a significant improvement from a net loss of RMB 204.0 million in the same period in 2015,