Chinese tier 1 PV manufacturer, ReneSola has successfully closed its US$70 million ADS share offering on the NYSE.
The company noted for the first time that the proceeds would be used for its polysilicon production facilities in respect to further plant optimisation efforts as well as working capital for general corporate purposes.
Xianshou Li, ReneSola's chief executive officer said: “With the global solar market continuing to expand, the proceeds from this offering will provide ReneSola with important working capital as we continue to grow our worldwide business. The proceeds will also be used for the optimisation of ReneSola's polysilicon plant, which will help us strengthen our supply source and control our raw material cost, thus putting us in a more advantageous position overall as we follow through on our longer-term business development strategy.”
ReneSola had only restarted volume polysilicon production (internal consumption only) in July, 2013 after completing lengthy furnace and hydrochlorination technology upgrades that were designed to significantly reduce production costs.
The company had said at the time that the completed upgrades would see production costs to decline to US$18/kg, compared to the US$24/kg before the plant was closed in the third quarter of 2012. ReneSola actually had production costs of over US$30/kg before that time, while spot market prices reached as low as US$15/kg at the end of 2012.
Management noted in the most recent quarterly conference (Q2 2013) call that its daily 20MT production still generated costs above US$20/kg, and was the key reason behind lower (7.3%) than expected quarterly gross margins.
The company had noted that polysilicon production was expected to be in the range of 1,100MT to 1,700MT in the third quarter.