ReneSola has restarted volume polysilicon production for internal consumption after completing furnace and hydrochlorination technology upgrades.
The company said that the upgrades enabled production costs to decline to US$18/kg, compared to the US$24/kg it was achieving in the third quarter of 2012, before its plants were shut down. ReneSola's production costs had been over US$30/kg in the first half of 2012.
ReneSola said that polysilicon production restarted at its Sichuan plant on July 1, 2013 and provided an annual capacity of 10,000MT.
Xianshou Li, ReneSola's chief executive , said: “Our polysilicon plant upgrades are key to reducing our overall wafer and module production costs, as well as shielding us from volatility in the polysilicon market. We're confident our expanded, internal polysilicon production will continue to lower our production costs, which will give us an advantage over our competitors and help us deliver positive results to our shareholders.”
However, according to Trendforce, polysilicon spot market prices averaged US$16.405/kg at the end of June 2013. Overcapacity in the polysilicon market has declined over the last 12 months due to companies closing plants because of prices falling well below production costs. Yet overcapacity remains a problem, keeping prices low.
ReneSola expects to produce approximately 1,800 to 2,000 MT of polysilicon in the third quarter of 2013, which is expected to cost approximately US$18/kg, providing further cost reduction opportunities as the plants ramp to full capacity.