(Yicai Global) Dec. 9 -- Longi Green Energy Technology will build another solar monocrystalline silicon material production project with a final output of 30 gigawatts in Yunnan province, the company said, after announcing a similar project with an annual output of 10GW in the southwestern Chinese province two weeks ago.

The new facility in Qujing city in eastern Yunnan province will start production gradually from 2021. The company will invest CNY3.4 billion (USD483 million) in the first phase, which will produce 10 GW of single-crystal silicon rods per year, the global solar power equipment giant in a Dec. 6 statement.

The Xi'an based company's shares [SHA:601012] rose more than 1.6 percent at one point after opening higher this morning, but have since gradually declined, falling 1.52 percent intraday to CNY25.21 (USD3.58).

Longi signed a project investment agreement with the Qujing government and related parties on Dec. 6. The company will mainly spend the money on equipment purchases and installation and operation in the first phase. The city government will lease factory buildings and supporting facilities to the company for 15 years, per the statement.

The firm will set up a local unit to operate the plant, per the statement.

Longi penned a deal for a similar factory with Tengchong city in western Yunnan on Nov. 23. That complex will have an annual output equal to that of the Qujing plant first phase, but its total investment is only CNY2.5 billion. The company's latest statement offered no explanation for the apparent disparity in investment between the two similar projects.

Yunnan has abundant local power and solar energy resources, and its industrial silicon production tops the country, the statement noted.

Longi is the world's largest producer of single crystal silicon materials for solar modules, with a current market share of about 40 percent. The company will expand its annual solar module output to 16GW this year, 25GW in 2020, and 30GW in 2021 to remain the industry leader, according to its production expansion plan released earlier this year.

Editor: Ben Armour