Chinese Solargiga establishes JV to make multicrystalline silicon solar wafers

(ADPnews) - Sep 22, 2010 - Chinese solar firm Solargiga Energy Holdings Ltd (HKG:0757) said Tuesday it had agreed wit Liaoning Oxiranchem Inc (SHE:300082) to set up a joint venture to build and operate a 500-MW multicrystalline silicon solar ingots and wafers plant.

With this move, Solargiga aims to enhance its multicrystalline silicon solar operations and speed up a production expansion plan. The company said it plans to pursue other business deals to boost its market share in future.

Total investments in the production facility will be about CNY 675 million (USD 101m/EUR 76m), while its registered capital is planned at CNY 200 million. Solargiga will invest CNY 74 million in the entity for a 37% stake in it.

The production facility, to be located in the city of Jinzhou, in the northeastern Chinese province of Liaoning, will include 50 casting furnaces, 75 wiresaws and other equipment. It will be built in two phases for five years. The first phase, to have a 200 MW capacity, is to be completed in two years, with the second 300-MW phase seen to last three years.

Solargiga will be responsible for the sale of all the plant's production, it said.

(CNY 1 = USD 0.149/EUR 0.112)

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