Solargiga Energy (O757.HK), one of the largest manufacturers of silicon solar ingots and wafers, announced an agreement to purchase a 51% interest in Qinghai Chenguang New Energy Co., Ltd. for RMB 45.9 million (US$6.8 million).
Solargiga and Qinghai Chenguang will jointly invest in the construction of monocrystalline silicon solar ingots production facilities with an annual production capacity of 2,000 tons.
Qinghai Chenguang New Energy Co., Ltd is located in Qinghai Dongchuan Industrial Zone.
It is expected that upon the completion of the acquisition, Qinghai Chenguang will commence the construction of a production plant with a planned annual production capacity of 2,000 tons of monocrystalline silicon solar ingots, which can accommodate 192 monocrystalline solar ingot pullers. The total investment amount of the project will be RMB 300 million (US$44.3 million), 30% of which will be funded by Solargiga and the existing shareholders of Qinghai Chenguang by proportionate shareholding, while the rest will be funded by bank loans.
The construction of the new production plant will be divided into 2 phases. The first phase will commence in 2010 whereby 96 monocrystalline solar ingot pullers are expected to be installed by the end of 2010. The first phase is expected to commence production in April 2011 and full production capacity is expected to be reached in July 2011 with an annual production capacity of 1,000 tons of monocrystalline silicon solar ingots. T
he construction of the second phase will commence by the end of 2011 with an additional 96 monocrystalline solar ingot pullers to be installed at the end of 2012. Full capacity is expected to be reached in mid 2013.
According to the Agreement, the Xining Economic & Technology Development Zone Administration Committee will take charge in coordinating the tender invitation for the construction of Qinghai photovoltaic power station and will ensure the use of solar modules produced by Solargiga in Qinghai receive top priority as permitted under local law and regulations.
In addition, Qinghai Chenguang intends to build a 200 KW photovoltaic demonstration power station in the production plant area, which will be sponsored by the Xining Economic & Technology Development Zone Administration Committee under the national policy of ”Golden Sun Program”.
In April 2009, Solargiga entered into a downstream joint venture produce and sell solar panels and install PV systems.
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