January 4 (SeeNews) - Chinese solar major Xi’an Longi Silicon Materials Co Ltd (SHA:601012) will construct, own and operate a 5-GW monocrystalline silicon ingot production plant in cooperation with Trina Solar Ltd (NYSE:TSL) and Tongwei Group.
Xi’an Longi Silicon, which chiefly makes monocrystalline silicon equipment for the photovoltaic (PV) industry, initially planned to build the manufacturing facility on its own as part of its continuous expansion strategy. Under the new plan, the three companies will establish a CNY-800-million (USD 114.6m/EUR 110.2m) joint venture (JV) in order to lower the risks related to the project.
Xi’an Longi Silicon will contribute CNY 480 million of the required sum, equal to a 60% equity stake. In turn, Trina Solar and Tongwei polysilicon subsidiary Sichuan Yongxiang will pour CNY 200 million and CNY 120 million in the scheme, which gives them 25% and 15% in the new entity, respectively.
The factory will be located in Lijiang city, Yunnan province, according to the statement. Completion is expected in 2018.
(CNY 1.0 = USD 0.143/EUR 0.138)