Strategic Tie-Up Between LONGi & Tongwei

LONGi & Tongwei Announce Strategic Cooperation Agreement; Both To Acquire 30% Stake In Each Other’s Manufacturing Facilities; Further Cooperation Arenas To Be Explored
12:17 AM (Beijing Time) - 05. June 2019
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The 2 Chinese solar companies LONGi and Tongwei are already collaborating on a 5 GW monocrystalline silicon ingot crystal growth facility in their home country, and LONGi has an agreement to purchase 55,000 tons of polysilicon to LONGi. Now both the PV manufacturing giants are interested in supporting each other with a strategic collaboration. (Photo Credit: LONGi Solar)

Key Takeaways

  • LONGi Green Energy & Tongwei have entered a strategic cooperation agreement which they say is not yet binding
  • As per the agreement, LONGi will acquire 30% stake in Tongwei’s 50,000 ton high-purity crystalline silicon facility; between 2020 and 2022, it will purchase polysilicon from Tongwei
  • Purchase price will be determined monthly on the basis of market dynamics
  • Tongwei will also pick up 30% stake in LONGi’s Ningxia Yinchuan 15 GW single crystal silicon rod and slicing project

LONGi Green Energy Technology and Tongwei Co., Ltd. have inked a strategic cooperation agreement under which both Chinese companies have decided to own 30% share each in one of each other’s manufacturing fabs.

While Tongwei has agreed to invest and purchase 30% equity in LONGi’s Ningxia Yinchuan 15 GW single crystal silicon rod and slicing project, LONGi will acquire a 30% stake in Tongwei’s 50,000 ton high-purity crystalline silicon facility.

Between 2020 and 2022, LONGi will purchase polysilicon from the project company of Tongwei that produces 50,000 tons of high-purity crystalline silicon. The purchase price will be based on market dynamics and determined on monthly basis.

The cooperation areas will continue to be expanded in the future to help the companies ‘further develop their respective professional advantages in the industrial chain, and lead to healthy and sustainable development of the global PV industry’. However, this agreement is not yet final, LONGi stated in its announcement.

LONGi and Tongwei are already working together along with Trina Solar on a 5 GW monocrystalline silicon ingot crystal growth facility in China (see LONGi, Trina & Tongwei To Build Ingot Factory).

Tongwei also has a contract to sell 55,000 tons of polysilicon to LONGi by 2020 to be supplied in phases (see LONGi: 20.66% Module Efficiency Record). The company is already the world’s largest solar cell manufacturer with its total annual production capacity for cells expected to reach 20 GW by the end of 2019.

At the end of 2018, LONGi had 28 GW of monocrystalline silicon wafer production capacity which it hopes to scale up to 36 GW by the end of 2019. In April 2019, it announced plans to expand its production capacity by an additional 18 GW with 15 GW coming in as ingot and wafer facility through a new subsidiary Yinchuan LONGi Crystal Silicon Co. (see LONGi Plans 18 GW New Capacity).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani