GCL-Poly Energy Plans 20 MW PV Solar Plant, Extends Product Line    

GCL-Poly Energy Holding Limited (HK: 0380) plans to build a 20 MW crystal silicon photovoltaic power plant, in Xuzhou city, Jiangsu province, it said on October 26th. The power plant in Qingshanquan town, Jiawang district, costing RMB600 million, is expected to start generating power by the end of 2009.
   GCL-Poly completed the acquisition of Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd. (Zhongneng) in July 2009. A company official said that Zhongneng focuses on integrating the upstream raw materials and downstream electric systems in its future development plan. That means Zhongneng, which wants to be one of the world's leading suppliers of silicon family, also aims to be a major player in fields integrating silicon wafers, downstream system as well as power stations.
   This August, Zhongneng started construction on a project for the crystal silicon wafer in Jinshanqiao economic development zone in Xuzhou. Construction is expected to complete before the end of 2010 for the project, which will have annual capacity of 2 GW.
   Zhongneng's polysilicon capacity was about 18 000 t/a at the end 2008, and its output was 7 500 tons that year. By 2010, the company's polysilicon capacity is expected to rise to 21 000 t/a.
   At present, Zhongneng has run all its polysilicon facilities and is still working on raising the capacity.
    "The reason that we get involved in silicon wafer is we want stable product quality and cut costs. Many silicon wafer processing companies are struggling since the financial crisis," the official said.
   Zhongneng's gross profit margin reached 41% in the first half of 2009. Quality will be its advantage in the future. The company sells about 70% of its silicon materials under contract deals and the rest on spot market.
   For Zhongneng, silicon tetrachloride, the byproduct of polysiclion, could all be transformed into silicochloroform, the raw material in polysilicon manufacturing. This, plus the application of some new technologies, helps Zhongneng reduce production costs. The company expects the production cost for polysilicon could be lowered to US$25 per kilogram in the future.
   The company also said the recent State Council decision to put a brake on the polysilicon sector could help end the disorderly competition situation in the domestic industry. "This means higher requirement to companies. Many small-scale polysilicon makers will be forced to close under tighter environmental policy, and the overall supply will be reduced," the company said.