China’s Xianyang City Building $487 Million Polysilicon Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--A polysilicon project claiming to be China's biggest so far, began September 23, 2007, in Xianyang City of Shaanxi Province.

Four Shaanxi companies have jointly invested about $487 million in the project, which is expected to be complete in two years. The companies are: Shaanxi Non-Ferrous (Holding) Group Company Limited (Xi'an City); Shaanxi Yanchang Petroleum (Group) Company Limited (Yan'an City);, Xi'an Lujing Science and Technology Company Limited (Xi'an City) and Shaanxi Provincial Investment Group Company (Xi'an City). Shaanxi Non-Ferrous will hold a majority of the shares.

The factory will be able to produce 3,750 tons of polysilicon every year. The first phase of construction involves a 1,250-ton-per-annum (TPA) product line of polysilicon for microelectronics.

The factory will cover 330,000 square meters in Zhengyang County of Xianyang City’s Weicheng District. Shaanxi Tianhong Silicon Material Company Limited has been established to manage the factory.

This August, reports showed that the project’s total investment was $684.2 million, the biggest ever by China's state-owned capitals. In the reports, the first phase of construction involves a 3,750 TPA product line, which is now the focus of the whole project. The previous 1,250 TPA microelectronics polysilicon, as a part of first-phase construction, has become the focus of the new plant’s first phase.

Almost $1 billion is planned has been invested in the field in an effort to end China's history of importing all polysilicon products and to make a considerable profit from it. However, analysts say that the polysilicon projects consume too much energy and that constructing them all at once might not be the best idea. If all projects are finished in 2010 according to current plans, the production capacity will surpass China's need of 40,000 tons to 50,000 tons a year.

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