(Yicai Global) April 29 -- Shares of Zhonghuan Semiconductor continued climbing after the major Chinese solar energy plant supplier said it will raise CNY9 billion (USD1.4 billion) to support one of the biggest solar wafer investment plans in China this year.

Zhonghuan's stock price [SHE:002129] rose as much as 2.2 percent this morning after jumping 4.2 percent yesterday morning.

The firm will issue about 607 million shares to up to 35 investors, who have not yet been chosen, for its large-sized solar wafer factory in western China, the Tianjin-based company said in a statement on April 27.

The project in the Ningxia Hui Autonomous Region started construction last month and is expected to reach full capacity by December 2022, according to public information.

Zhonghuan will invest CNY11 billion to build the plant to make 210-millimeter solar monocrystalline silicon wafers in one of the largest solar wafer projects in the country this year, according to the statement. The goal is to meet downstream demand while improving the firm's product mix, it explained.

Large-size silicon wafers are more efficient than smaller ones, which could help Zhonghuan consolidate its positioning by reducing photovoltaic power supply and distribution costs, it added.

Zhonghuan’s production capacity of monocrystalline silicon wafers was 55 gigawatts by last December and 210-millimeter silicon wafers accounted for 40 percent of the total, according to the firm.

Editor: Emmi Laine, Xiao Yi