Leshan Sees Growth in Polysilicon Industry        

Leshan, a city in southwest China's Sichuan province, attempts to create three industrial chains for silicon materials used in photovoltaic cells, electronic industry, and silicon chemicals recycle utilization.
   The electronic and silicon materials businesses contributed RMB6.96 billion in sales revenue for Leshan city in 2008, up 40% from a year earlier, according to the local government. Leshan produced 1180 tons of polysilicon in 2008.
   "By the end of this June, the city has combined polysilicon capacity of 4 500 t/a," a Leshan government official said on July 28th. The capacity could be expanded to 7 500 t/a by the end of 2009.
   Global polysilicon prices have slumped since 2008, causing many investments and projects in China to be delayed. Leshan is no exception, with construction of a total of 15000 t/a capacity being postponed in 2009.
   To date, no polysilicon company in Leshan has severe financial risk. The prospects are still bright, he said.
   In April 2009, the Ministry of Science and Technology approved plans to build a national industrialization base in Leshan to promote the development of silicon materials and utilization of related byproducts.
   The Leshan government has set a target to increase sales revenue from silicon-based materials and related utilization business to RMB100 billion by 2013. It plans to set up a special fund to push forward the strategic restructuring and consolidation for local silicon companies. It will give preferential supports for silicon material makers to list on stock markets at home and abroad, and attract domestic and international investors, to invest in Leshan's silicon companies.
   There are 25 projects in the solar photovoltaic silicon material field in Leshan at present.
   Sichuan Yongxiang Polysilicon Co., Ltd.'s first phase 1 000 t/a plant came on stream in September 2008. The second phase of 3 000 t/a is under construction. (CCR2008 No.29)
   Sichuan Xinguang Silicon Sci-Tech Co., Ltd.'s 1 000t/a polysilicon demonstration project started production in March 2007. The company began construction on a polysilicon engineering center and a 350 t/a line for mono-crystal silicon pulling and wafer in April 2009.
   Dongfang Steam Turbine Emei Semiconductor Co., Ltd.'s first phase project - 500 t/a electronic-grade polysilicon came on stream in September 2008. And the company also is in process of the second phase line 3 000 t/a for solar-grade polysilicon, which will be built in two stages. The first stage of 1 500 t/a has produced the first-batch on-spec products in March 2009, and is now under trial run to go normal operation in the third quarter. Construction of the second stage - 1 500 t/a unit will be started in the second half. Also, Dongfang plans to build a 1 500 t/a polysilicon line, its third phase, in 2010.
   Shenzhen Topray Solar Co., Ltd. (SZ: 002218) also in 2008 set up a subsidiary, the Xintianyuan Company, for the operation of its 15 MW polysilicon project for photovoltaic cells in Leshan. Shenzhen Topray said the first batch of silicon wafers were rolled out in January 2009.
   Leshan Electric Power Co., Ltd. (SH: 600644) and Baoding Tianwei Baobian Electric Co., Ltd.  (Tianwei Baobian, SH: 600550) have formed a 51: 49 joint venture, Ledian Tianwei Silicon Science and Technology Co., Ltd., for a 3 000 t/a polysilicon project in Leshan. Construction was started on March 29th, 2008, and production is expected to start by the end of this year.
   Leshan also is home to six projects in the electronic-grade silicon material business and 10 projects in the silicon chemicals recycle utilization business.
   Leshan will have 7 500 t/a polysilicon production capacity and 360 MW solar cell manufacturing capacity by the end of this year.