(Yicai Global) Dec. 8 -- Longi Green Energy Technology, the world’s largest supplier of monocrystalline silicon wafers, will invest CNY3 billion (USD430 million) to build the second phase of a photovoltaic module plant in the Chinese city of Wuhu that it began work on in late August.

Phase II will be able to make 15 gigawatts of solar cell modules a year, up from an initially planned 10 GW, the Xi’an-based company said yesterday, citing the investment deal it penned with the Wuhu economic and technological development zone.

Longi, which makes half of the world’s monocrystalline silicon wafers, announced on Aug. 24 that it would invest CNY2.5 billion to build the first phase of the plant in Wuhu in China’s eastern Anhui province. With an annual capacity of 10 GW, it is expected to begin production in the second half of next year.

Hiking investment in its solar cell module plant will undoubtedly create a larger downstream market for Longi’s silicon wafer products.

The company’s shares [SHA: 601012] rose 1.2 percent to close at CNY46.50 (USD6.67) today.

Wuhu Longi Photovoltaic Technology, owned by Longi unit Longji Leye Photovoltaic Technology, will lease factory buildings and support facilities for the second phase of the project, which will kick off production six months after the signing of the lease and reach capacity within a year after being put into operation.

Longi does business in both the upstream and downstream segments of the PV industrial chain. Silicon wafer production is the company’s most profitable business thanks to rising prices of upstream raw materials in recent years.

The firm has cut its silicon wafer prices twice since the end of October, as the long-term short supply of upstream raw materials, including silicon materials and silicon wafers, is being eased and will likely enter surplus. Rival TCL Zhonghuan Renewable Energy Technology also cut prices. 

Editor: Futura Costaglione