- JinkoSolar has announced that its principal operating subsidiary, Jinko Solar Co., Ltd. plans to invest RMB450 million (USD 70 million) for equity in Sichuan Yongxiang Energy Technology Co., Ltd., a subsidiary of Tongwei Co., Ltd.
- The investment will be used for the construction of a high-purity polysilicon production line with an annual capacity of 100,000 tons.
- Jinko Solar is the largest solar panel manufacturer in the world in terms of cumulative global shipments boasting accolades for the highest quality and performance.
After the capital increase is completed, Jinko Solar Co., Ltd. will hold a 15% stake in the Project Company, the latest update on the strategic partnership between the two parties announced in February 2021. At the same time, Jinko Solar Co., Ltd. will secure a stable supply of nearly 30,000 tons of high-purity polysilicon every year once the project is fully operational, and will share the pro rata profit allocated by the paid-in capital with the Project Company for the duration of the joint venture.
Mr. Kangping Chen, CEO of Jinko Solar Co., Ltd., commented, “The strategic investment into this new high-purity polysilicon production line based in Leshan, Sichuan Province, is beneficial because it is geographically close to JinkoSolar’s major mono wafer production facilities. By securing this new line of clean, high-quality and highly reliable raw material, we will be able to guarantee the long-term reliability of our wafer and module production for the next few years. In addition, we have also realized that the healthy and sustainable development of the PV industry is increasingly dependent on the profound cooperation among supply chain partners. By leveraging Tongwei’s leading high-purity polysilicon production capabilities, we will be able to fully reach the potential of our in-house integrated production of silicon wafers, cells, modules, and by optimizing technology and specialized labor, both companies will jointly work together to reduce costs and improve efficiency in PV manufacturing, and build a long-term sustainable clean energy ecosystem for the industry.”
Author: Bryan Groenendaal