ReneSola Ltd has sold its 49% share interest in Linzhou Zhongsheng Semiconductor Silicon Material Co., Ltd., and renegotiated its polysilicon purchases with the JV that will end after a RMB156 million sum is fully credited. ReneSola said that its current feedstock supply deals coupled to its Sichuan polysilicon plant and the Linzhou facility capacity and expected tolling arrangements, provided sufficiently for its 2009 wafer production output.
ReneSola sold its 49% equity interest to Zhongsheng Steel for RMB200 million, with a cash payment of RMB44 million. The credit of RMB156 million will see ReneSolar receive a discount of RMB500/kg to the polysilicon spot price for future supplies, the company said.
“As part of our ongoing evaluation of our raw material sourcing strategy for 2009 we have determined it is in the best interests of our shareholders to divest our equity interest in the Henan polysilicon production facility,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “The Linzhou facility will continue to provide us with polysilicon at a discounted price until the RMB156 million is fully credited. Our existing polysilicon purchase contracts, combined with the additional production from our Sichuan polysilicon plant and the Linzhou facility and expected tolling arrangements, should fully support our required feedstock for our 2009 wafer production output.”
ReneSola expects to start polysilicon production at its Sichuan polysilicon plant by mid-2009.