(Yicai Global) Jan. 3 -- Longi Green Energy Technology, the world's biggest supplier of mono-crystalline silicon products, plans to spend CNY2 billion (USD286 million) to double its wafer-making capacity in Chuxiong, Yunnan province, as it bolsters production in partnership with the local government.
The money will go toward building a 20 gigawatt factory in the city and ensuring it has adequate operating capital, the Shaanxi province-based firm said in a statement yesterday. The local government will provide the factory space and supporting facilities under a 15 year lease for the company, whose products are mostly used in making solar cell modules.
Shares in Longi [SHA:601020], which has a 40 percent of the global mono-crystalline silicon market, had risen nearly 1.5 percent to CNY26.89 (USD) as of 10.43 a.m.
The company already has two 10 gigawatt facilities in Chuxiong and is planning to take its capacity in the city to 60 gigawatts under an agreement with the municipal government.
It has been continuously investing more cash into mono-crystalline silicon chip production throughout China, but has been focusing mostly on Yunnan province where there is an abundance of electricity and silicon available for industrial use.
Editor: James Boynton