Xinyi Expanding Into Polysilicon Production

• Xinyi Glass and Xinyi Solar have announced the launch of their JV Xinyi Silicon to produce polysilicon in China
• Production facilities will be located in Qilin district of Quijing city in Yunnan province
• Initial production capacity aimed is 60,000 tons annually that may be scaled up to 200,000 tons later, together with up to 10,000 tons of white carbon black

Solar glass producer from China, Xinyi Glass along with Xinyi Solar has launched a new joint venture (JV) in the space of polysilicon, calling it Xinyi Silicon. The new venture will aim to manufacture 60,000 tons of polysilicon annually, which may subsequently be increased to 200,000 tons through different phases, together with up to 10,000 tons of white carbon black.

Xinyi Silicon (Hong Kong) will invest around RMB 6.0 billion to establish polysilicon production facilities in Qilin district of Qujing city in Yunnan province of China through its subsidiaries. Expanding

The municipal government of Qujing will provide policy and administrative support to the new venture in terms of land availability for the construction of polysilicon production facilities. Within 60 days of Xinyi Silicon securing land use rights, the company will commence construction, expecting to complete it within 2 years.

It is owned by Xinyi Solar (Hong Kong) and Xinyi Glass (Hong Kong) as 52:48 stake, both of whom have committed RMB 3.3 billion of equity as funding for the new venture. Xinyi Silicon will operate as a non-wholly owned subsidiary of Xinyi Solar.

Xinyi Solar manufactures and sells solar glass produced by Xinyi Glass as the latter also produces glass for automobiles and construction industries. The company is one of the world's largest solar glass suppliers and had an aggregate melting capacity of solar glass of 11,800 tons a day as of June 30, 2021 (see Xinyi Solar's H1/2021 Revenues Grow Over 74% YoY).

Xinyi management said the decision to venture into polysilicon production stems from the ongoing and growing demand for clean energy in China thanks to the government committing to carbon neutrality target before 2060, as well as globally (see China Pledges Carbon Neutrality Goal By 2060).

"The sales of solar glass products by Xinyi Solar will also create synergy with the sales of polysilicon by Xinyi Silicon, as both types of products are targeting a similar group of customers," added the management as both Xinyi Solar and Xinyi Glass will be able to capture emerging business opportunities with the 'combination of the financial strength and the manufacturing expertise'.

Details of the JV arrangement were declared by the management in a stock exchange listing.