GCL-Poly finds a partner for its new polysilicon plant

In a complicated financial deal GCL-Poly Energy will sell part of a subsidiary which is building a polysilicon plant in Qitai county, and use money (about $451-million) to strengthen another subsidiary’s monocrystalline silicon business.

The framework agreement was announced in August. The deal includes: Tianjin Zhonghuan will inject further capital into Xinjiang GCL for the development of the Xinjiang Project; The company will invest in the “Zhonghuan Photovoltaic Phase IV Monosilicon Rods Project” and will hold part of the shareholding interest in the project company. The parties will also collaborate to plan and invest in new monosilicon rods projects where appropriate; Depending on Tianjin Zhonghuan’s capacity requirement for processing monosilicon wafers, Tianjin Zhonghuan may acquire part of the shareholding interest in the target wafer slicing factories from the company.

The new polysilicon plant will produce 60,000 mtpy, including 40,000 mtpy of newly built facilities and 20,000 mtpy of existing Xuzhou facilities to be removed and relocated to Xinjiang. The estimated additional total investment of the project is approximately rmb5,682,000,000 (equivalent to approximately HK$6,420,660,000).

Upon completion of the transaction, Jiangsu Zhongneng will retain a 70% stake in Xinjiang GCL, while Tianjin Zhonghuan will hold 30%. Xinjiang GCL will remain an indirect, non-wholly owned subsidiary of GCL-Poly Energy.

“The capital increase agreement can further consolidate the competitiveness of the group in monocrystalline silicon products,” according to a statement to the Hong Kong stock exchange.

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of