The funding will be financed by internal resources and bank loans, and the Xuzhou Government will provide relevant support to the development of the Project. The Project is under the plan that the Board of Directors has approved to develop and invest in the production of silicon wafer in Jiangsu Province, PRC with a total capacity of 2GW and a planned total investment of US$700 million.
Mr. ZHU Gong Shan, Chairman and CEO of GCL-Poly, said, "To develop and invest in the production of silicon wafer is part of our general strategy. According to the long-term contracts with our solar cells and modules customers, the Group is required to supply a total of 15.4GW of wafer and 33,000 tonnes of polysilicon from 2008 to 2015.
Developing the wafer production will enable the Group to fulfill its contractual obligation. Besides, by developing the wafer production, the Group can substantially raise the quality of its wafer products and lower its production cost, so as to realize the synergies between polysilicon manufacturing and wafer production and thus further enhance the Group’s competitiveness in both the domestic and overseas markets."
About GCL-Poly Energy
GCL-Poly Energy Holdings Limited is a world leading polysilicon manufacturer for the solar industry and a leading integrated green energy enterprise in China. Production capacity of GCL Solar, a subsidiary of the Group, is expected to reach 18,000 metric tonnes of polysilicon by the end of 2009, and 1 GW of solar wafers by mid 2010.
In addition, the Group operates a total of 18 cogeneration power plants, 1 incineration power plant and 1 wind power plant. Most of these plants are located in Jiangsu and Zhejiang provinces with strong economic growth and robust demand for electricity and steam. All these plants are advocated and encouraged by Chinese government.