Tongwei Group to Invest More than $4 Billion in Largest Photovoltaic Complex Project in Xinjiang

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Researched by Industrial Info Resources (Sugar Land, Texas)--The signing ceremony for the development agreement for Tongwei Group's (Chengdu, Sichuan) photovoltaic industrial complex was held in Xinjiang on September 22, 2011, Tongwei Group announced the following day.

According to the agreement, Sichuan Yongxiang Company Limited (Chengdu, Sichuan), a subsidiary of Tongwei Group, will invest more than $4 billion to build the largest photovoltaic complex project in the Fukang Industrial Park in the Xinjiang autonomous region, which includes the construction of a 50,000-ton-per-year solar energy polysilicon project; a 3-gigawatt (GW) solar energy wafer, with an associated solar cell project; and a 1,750-megawatt (MW) cogeneration power plant. The industrial park will occupy a total planned area of 600 hectares. The entire complex will be built in three phases in about five years. Upon completion, the project is expected to bring an estimated annual sales income of more than $4.7 billion.

Tongwei Group, through its joint venture with Sichuan Giastar Group (Chengdu, Sichuan), currently has an annual polysilicon production capacity of 4,000 tons per year in Leshan City, in the Sichuan province. With the adoption of its own process, the manufacturing cost of its polysilicon has dropped to about $30 per kilogram.

With the kick-off of the photovoltaic complex project in Xinjiang, Tongwei Group will establish its "double bases" deployment, with manufacturing bases in Sichuan and Xinjiang. As reported, Tongwei Group's total production capacity of polysilicon will reach more than 10,000 tons in 2012. Following the drop in production costs, the cost of Yongxiang's polysilicon project will be further reduced to about $20 per kilogram in 2012.

On July 24, 2011, the National Development and Reform Commission (NDRC) issued "Notices Regarding the On-Grid Pricing Policy for Solar Photovoltaic Power," which specified that the reference price for on-grid sales price of photovoltaic projects in China would be about $0.156 to $0.180 per kilowatt-hour (KWh). The publishing of this policy greatly promoted the development of photovoltaic power in China.

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