Xinte Energy, owned by TBEA, says it cannot produce polysilicon fast enough to meet demand and wants shareholders to back its bid to quadruple manufacturing capacity by mid-2024.
Chinese polysilicon maker Xinte Energy has predicted “some shortage of polysilicon production capacity and volume over the next five years” as it tries to persuade shareholders to back an 8.8 share issue. billion yuan ($1.38 billion).
The solar maker and developer, which is owned by electrical equipment company TBEA, wants its investors to back a plan to issue 300 million shares, or 17.34% of the shares of the expanded company. It aims to raise half of the cash needed to build a poly factory in Xinjiang capable of producing 200,000 tons of solar panel raw material per year.
Xinte shareholders will vote on the share issue at an extraordinary general meeting on May 5.
Highlighting the explosion in global demand for solar power, Xinte said that even with a 100,000-ton polysilicon plant in Inner Mongolia set to be completed this year, orders for solar wafers worth more than one million tonnes it received from companies such as Longi and JA Solar means it has stalled sales for three to five years.
This Inner Mongolia facility will double Xinte’s annual poly production capacity and the company aims to double that number again by June 2024, with a 200,000 ton, CNY 17.6 billion site in the Changji Zhundong Industrial Park. , which will be built in two 100,000-ton stages. .
According to the manufacturer’s plans, construction of the 12-month first phase of the Xinjiang plant would begin next month, with the second stage being built from June next year. The other half of the investment cost will come from “bank loans and other methods,” Xinte said in an announcement on the Hong Kong Stock Exchange this week.
Silicon production in Xinjiang is a contentious issue outside of China – particularly whether forced labor is part of the solar value chain. The U.S. House of Representatives drafted the Uyghur Forced Labor Prevention Act in December, which proposes to ban all imports from Xinjiang unless forced labor is proven to have occurred. no role in their production.
Outlining its plans this week, Xinte highlighted the energy-intensive credentials of “cold hydrogenation technology” to be deployed at its latest proposed manufacturing site.
At the May 5 meeting, shareholders will also be asked to approve amendments to the company’s articles of association, which include the formation of a “communist party” within the company to implement the Committee’s main strategic decisions. central party and the Council of State.
The bylaw changes also remove several references to the specific Hong Kong stock exchange where Xinte Energy is listed and replace them with references to a generic stock exchange, hinting that the company may be preparing to move its listing.
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