Solargiga, Motech to inject USD 3m in 600-MW module line

China’s Solargiga Energy Holdings (HKG:0757) and Taiwanese peer Motech Industries Inc (TPO:6244) have agreed to make a CNY-20-million (USD 3.1m/EUR 2.9m) capital injection in an entity planning a 600-MW module production line.

Through their respective units Jinzhou Jinmao Photovoltaic Technology Co Ltd and Motech (Suzhou) Renewable Energy Co Ltd, the companies will make cash contributions of CNY 8.6 million and CNY 11.4 million into the target in order to expand its production capacity and to meet its general working capital requirements. Following the move, they will own 81% and 19% equity stakes in Jinzhou Yangguang Motech Renewable Energy Co Ltd, accordingly.

Aiming to take advantage of growing demand for photovoltaic (PV) modules, Solargiga set up the target company earlier this year. Apart from designing and installing solar arrays, Jinzhou Yangguang Motech will have an annual capacity to produce 600 MW of modules, with the first 400-MW line scheduled to commence production in February 2016, followed by the remaining 200 MW during the third quarter of that year.

Solargiga manufactures and sells silicon solar ingots, wafers, cells and panels. Its total annual production capacity for PV modules will reach 1,200 MW once the additional lines are completed, the firm said in a statement on Thursday.

(CNY 1.0 = USD 0.157/EUR 0.146)

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