Zhonghuan Strengthens Solar Material Business      

Tianjin Zhonghuan Semiconductor Co., Ltd. (Zhonghuan, SZ: 002129) plans to issue additionally up to 90 million shares toward ten special investors for approximately RMB1.1 billion.
   The RMB100 million of the proceeds will be used in R & D and operation of crystal silicon project in its fully-owned Tianjin HuanOu Semiconductor Material and Technology Co., Ltd. And Tianjin HuanOu will put fund of RMB800 million into Inner Mongolia Zhonghuan Solar Material Technology Co., Ltd., which is building a crystal silicon material for recycle solar cell project phase II.
   Inner Mongolia Zhonghuan is an 80: 20 joint venture between Zhonghuan and Shanghai Aerospace Automobile Electromechanical Co., Ltd., located at Jinqiao Development Zone, Hohhot, Inner Mongolia. Inner Mongolia Zhonghuan is debugging its crystal silicon material project phase I, which is scheduled to complete this August and has a capacity of 110 MW crystal silicon and 50 MW crystal silicon wafer upon startup. The second phase, which is estimated to cost RMB1.0 billion, will add a capacity of 390 MW crystal silicon and 150 MW wafer per year.
   Zhonghuan, established in 1969, specializes in producing and marketing of semiconductor devices, power IC and semiconductor materials.