Sep 22 2010
China's leading monocrystalline silicon solar ingots and wafers manufacturer, Solargiga Energy Holdings Limited ("Solargiga" or the "Company", HKSE Stock Code: 757, Taiwan Depositary Receipts: 9157TT, and its subsidiaries, the "Group"), announced that the Company entered into a cooperation agreement (the "Agreement") with Liaoning Oxiranchem, Inc. ("Liaoning Aoke", SZSE stock code: 300082.SZ) on 21 September 2010 for the proposed establishment of the Joint Venture to engage in the business of manufacturing multicrystalline silicon solar ingots and wafers with a production capacity of 500MW.
The amount of total investments and registered capital of the Joint Venture are proposed to be RMB 675 Million and RMB 200 Million. Solargiga will own 37% interest in the Joint Venture company with the capital injection of RMB 74.0 Million. The production plant will be located in Longqiwan New Zone, Jinzhou, Liaoning Province in the PRC. 50 casting furnaces, 75 wiresaws and other equipment are expected to be installed.
The construction of the new production plant will be divided into 2 phases in 5 years. The capacity of the first phase will be 200MW and is expected to take 2 years to complete. 20 casting furnaces, 30 wiresaws and other equipment are expected to be installed. The capacity of the second phase will be 300MW and is expected to take 3 years to complete. 30 casting furnaces, 45 wiresaws and other equipment are expected to be installed.
In addition, Solargiga and Liaoning has agreed that the sales of all the output from the production plant will be coordinated by Solargiga.
Commenting on the agreement, Mr. HSU You Yuan, CEO and Executive Director of Solargiga, said, "The cooperation between the Company and the Liaoning Aoke allows the Group to strengthen the development of its multicrystalline silicon solar business. It will also accelerate the horizontal production expansion plan of Solargiga so as to satisfy the demand from customers. Looking ahead, the group would continue to seek new business opportunities for development, grasp the huge market opportunities to increase market share and reward our shareholders with satisfactory business performance."