GCL-Poly will use Yingli Green’s PV modules for its project pipeline that stands at around 1GW in a major new pact between the two companies.
The three-year strategic agreement between China’s largest polysilicon and solar wafer producer and both China’s and world’s largest PV module manufacturer encompasses polysilicon and wafer supply, through to R&D initiatives on material quality and cost reductions.
Yingli Green recently guided module shipments of between 3.2-3.3GW for 2013, a 40% increase over the previous year, despite in-house capacity staying unchanged at around 2.3GW. However, GCL-Poly has significant underutilised polysilicon and wafer capacity and had been purchasing modules from its customers in China for its PV project business.
The new pact secures sufficient material requirements for Yingli Green to increase module shipments and supply large volumes of modules to GCL-Poly’s projects over the next few years. Tight supply of tier 1 modules has already been seen in Europe as emerging markets take off.
GCL-Poly recently said that it had 327MW PV projects ready to commence construction.
Although material quantities were not disclosed, the deal is probably the largest of its kind in the industry, creating significant opportunities to drive down material costs. Yingli Green was said to have plans to also build a ‘global network procurement platform’ to meet its volume and cost reduction needs.
Liansheng Miao, chairman and chief executive of Yingli Green Energy, said: “Through this win-win cooperation, I hope Yingli Green Energy and GCL-Poly will fully leverage our advantages to continue to enhance product quality, reduce manufacturing cost and promote a broader application of solar PV in the world.”
Having become the number one module manufacturer in 2012, Yingli Green is building the supply-chain partnerships required to significantly expand its ability to gain more market share and distance itself from potential rivals.