China-based monocrystalline silicon solar ingot and wafer manufacturer, Solargiga, has entered into a cooperation agreement with the Xining Economic & Technology Development Zone Administration Committee to acquire 51% interest in Qinghai Chenguang New Energy for the construction of monocrystalline silicon solar ingot production facilities with an average annual production capacity of 2,000 tonnes.
The consideration of the acquisition will be RMB45.9 million and will be paid by way of capital increase through cash injection. The total investment amount of the project will be RMB300 million, 30% of which will be funded by Solargiga and the existing shareholders of Qinghai Chenguang by proportionate shareholding; the rest will be funded by bank loans.
The construction of the new production plant will be divided into two phases, with the initial phase commencing in 2010 with 96 monocrystalline solar ingot pullers installed by the end of the year, the company said. Production will begin in April 2011, with full production capacity reached in July 2011. The 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.
HSU You Yuan, CEO and executive director of Solargiga, said, ”With the competitive edges in resources and energy in Qinghai Province, the group will further improve its production efficiency. Looking ahead, the group would continue to seek new business opportunities for development, grasp the huge market opportunities to increase market share and reward our shareholders with satisfactory business performance.”
Qinghai Chenguang also intends to build a 200kW 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 Programme”.