Shuangliang Eco-Vitality is planning to arrange a brand new wholly owned subsidiary, Shuangliang New Silicon Supplies (Baotou), to spend money on and construct a mono silicon ingot pulling mission with an annual output of 50GW.
The mission can be situated adjoining to Shuangliang Silicon Supplies’ mono silicon mission website within the Baotou Xitu Hello-Tech Business Growth Zone, Interior Mongolia, China.
It’s anticipated the ability will take two years to assemble and require an funding of RMB10.5 billion (US$1.5 billion).
The aforementioned subsidiary has accomplished enterprise registration procedures and has obtained an working license, with registered capital of RMB2 billion (US$286 million).
For Shuangliang Eco-Vitality, the funding builds on its unique 40GW mono silicon mission in Baotou. The corporate mentioned the mono silicon wafer trade is going through extra intensified competitors. As a latecomer, the corporate will undergo from the danger of declined market share and lose aggressive benefit if it can not keep superior manufacturing capability and portfolio differentiation.
Threat of extreme capability
On the one hand, firms are dashing to increase their capability, whereas on the opposite, the trade is risking excessiveness as increasingly more new silicon wafer capability is getting launched.
LONGi, TCL Zhonghuan and different trade giants have not too long ago adjusted their wafer costs downward. The crucial purpose behind the phenomenon is the extreme provide of wafers attributable to an excessive amount of manufacturing capability and silicon materials stock clearance.
Citic Securities statistics of China’s high 15 wafer enterprises present that wafer capability is predicted to develop by 226.5GW this 12 months to a cumulative 559.1GW. CPIA predicts that the worldwide newly put in photo voltaic capability is about 230GW this 12 months, and the corresponding wafer demand is 276GW.
Chuancai Securities predicted that rising silicon wafer capability could trigger stress. With the acceleration of recent capability releases, wafer costs are anticipated to progressively fall.
With a purpose to assure the availability of uncooked supplies, Shuangliang Eco-Vitality has been signing long-term orders with the upstream suppliers this 12 months. In line with incomplete statistics, the corporate has signed 5 silicon orders throughout the 12 months.
Frequent procurement and mission growth plans have additionally triggered considerations about Shuangliang’s monetary capability. From 2016 to 2020, Shuangliang’s asset legal responsibility ratio remained between 40% to 51%. Within the first half of this 12 months, the corporate’s debt ratio reached a document excessive of 82.65%.
By the tip of the third quarter, the corporate’s debt elevated to RMB16.7 (US$2.38 billion).
