(Yicai Global) Aug. 14 -- GCL-Poly Energy Holdings Ltd. [HKG:3800], the world's largest polysilicon and silicon wafer maker, has teamed up with Tianjin Zhonghuan Semiconductor Co. [SHE:002129] for the second time this year to pump capital into the biggest polysilicon base in the world.
The pair signed a framework agreement on strategic cooperation on Aug. 11 in China's northeastern municipality of Tianjin, Chinese news outlet Jiemian reported.
Zhonghuan will pour money into GCL-Poly's polysilicon project in western China's Xinjiang province, and may acquire a stake in its monocrystalline silicon wafer cutting factory, the report said.
GCL-Poly will also take a stake in Zhonghuan's photovoltaic phase-four monocrysalline silicon rod project, which is currently under construction.
This is the second partnership between the two this year, after Zhonghuan pumped CNY150 million (USD22 million) into GCL-Poly's Xinjiang polysilicon project in early July.
The 60,000-ton Xinjiang plant will become the world's biggest polysilicon base by size, overall capacity and output and will take GCL-Poly's annual polysilicon capacity from 70,000 tons to 115,000 tons when it is completed in 2020.
"GCL-Poly has been good at cutting silicon wafers but not at making monocrystalline silicon rods," said Zhu Gongshan, its chairman. "But Zhonghuan is a leader in this field."
The two firms will also work together in industry-related management, technology, research and development and to develop solar power plants.
Zhonghuan is a state-owned affiliate of Tianjin Zhonghuan Electronic and Information Group Co. engages in the research, development, production and distribution of monocrystalline silicon and has the biggest share of the global market for efficient N-shaped silicon wafers.
Last year, GCL-Poly had the biggest share of the world's polysilicon market, with 23 percent, and had a 30 percent share of the silicon wafer market.