(Yicai Global) Sept. 28 -- Major Chinese solar photovoltaic cell maker Tongwei Co. [SHA:600438] will boast a production capacity of 10 gigawatts by the end of 2018, Xie Yi, company president, said in an interview with Yicai Global.
"The capacity could reach 20 or 30 gigawatts in the future, depending on the market," he added.
The company will start building a 2.3-gigawatt production line at its facility in Hefei, the capital of China's Anhui province, by the end of the year, and begin construction of a two-gigawatt production line in Chengdu, Sichuan province early next year, Xie said at a press briefing.
Both projects will enter operation before the end of 2018, enabling Tongwei to boost annual production capacity to 9.7 gigawatts.
Actual output may actually exceed 10 gigawatts, based on the company's current 110-percent capacity utilization rate. This rate far exceeds the domestic industry average of 80 percent. Tongwei's 17.28-percent average gross margin also vastly outperforms the 10-percent industry average.
Tongwei Group acquired LDK Solar Hefei Co., which was on the verge of bankruptcy, in 2013. The move enabled the company to enter the solar cell production sector and reach a capacity of 2.4 gigawatts by the end of 2015.
The firm set a goal at the end of 2016 to hold 10 gigawatts in production capacity by 2020 and become the world's biggest solar cell maker.