GCL To Invest In 10 GW Solar Cell Production

• GCL-SI has signed agreement with Leshan city administration to set up 10 GW solar cell production
• The RMB 4.3 billion project will be realized in 2 phases of 5 GW each; on completion it will produce solar cells worth RMB 8 billion
• The cell production at Leshan will lend a helping hand to the company's 60 GW solar module production project in Hefei

Chinese solar PV cell and module manufacturer GCL System integration Technology Co. Ltd. (GCL-SI), has announced it will be building a 10 GW solar cell production project under an investment agreement it signed with the administration of Leshan city in Sichuan province, China.

To be built in the High-Tech Zone of Leshan city, the 10 GW project will be completed in 2 phases of 5 GW each for a total investment of RMB 4.3 billion ($664 million). Phase I will be completed in December 2021 on some 160 MU (over 26 acres) of industrial land. Remaining 5 GW is expected to come online before the end of H1/2022 taking 180 MU (over 29 acres) of land.

Once the entire 10 GW capacity is up and running, GCL-SI believes the project will roll out solar cells worth RMB 8 billion ($1.23 billion) annually.

It will also help GCLSI meet large sized solar cell capacity required by the company's planned 60 GW solar module project it is building for RMB 18 billion in Hefei of Anhui province in China and first announced the project in March 2020 (see GCL System Announces 60 GW Solar Panel Factory In China).

Recently the group increased the capital of its Hefei GCL Integrated New Energy Technology subsidiary from RMB 10 million to RMB 800 million with an infusion of RMB 790 million with a view to accelerate the implementation of the 60 GW project (see China PV Snippets: Zhongli, Jinko, CSI, Tongwei, GCL, LONGi).

According to a January 6, 2021 Xinhua report, GCL-SI launched the Hefei production base in early December 2020 to be built in 4 stages between 2020 and 2023 starting with an initial 15 GW under construction now. It will cater to 182mm and 210mm silicon wafer sized modules.

In the past few months, GCL Group has been trying to raise money to fund its 60 GW module project by selling its projects. In November 2020, it sold 1.1 GW power stations to raise RMB 2.08 billion to repay its debts (see China PV News Snippets: GCL, Yingli, Jinjing, Suzhou Run). It followed up with 2 group companies—GCL-Poly Energy and GCL New Energy—announcing their indirect subsidiaries to sell their stake in 4 PV companies to bring in RMB 291 million, back in December 2020 (see China PV Snippets: Sungrow, Gaojing, Tongwei, GCL).