Pursuant to the agreement, Solargiga and Qinghai Chenguang will jointly develop monocrystalline silicon solar ingots production facilities, which will have an annual production capacity of 2,000 tonnes.
The cost of the project is estimated at CNY300m, 30% of which will be provided by Solargiga and the existing shareholders of Qinghai Chenguang, while the rest will come from bank loans.
The construction of the new plant will be divided into two phases with the work on first phase scheduled to start in 2010 with the installation of 96 monocrystalline solar ingot pullers by the end of 2010. The company plans to begin production in April 2011 and reach full production capacity in July 2011 yielding 1,000 tonnes of solar ingots annually.
The second phase of construction, which will begin by the end of 2011 with an installation of additional 96 monocrystalline solar ingot pullers at the end of 2012, is expected to reach full capacity in mid 2013.
Xining Economic & Technology Development Zone Administration Committee will be responsible for coordinating the tender invitation for the construction of Qinghai PV power station.
In addition, a 200kW PV demonstration power station is planned to be built in the production plant area with funding from by Xining Economic & Technology Development Zone Administration Committee under the national policy of ‘Golden Sun Programme’.
