GCL to Become Largest Poly maker in the World

GCL which is the world’s largest manufacturer of polysilicon and wafers and also one of the largest producers of solar panels is planning another major expansion. The company plans to build a giant 40,000-ton silicon factory in Xinjiang which will be big enough to produce 8000 MW of solar panels a year. The company already has a capacity to make 70000 tons of silicon a year and this will further increase the company’s capacity by more than 50% making it the largest poly maker in the world. The company has already become a major downstream player by investing heavily in making solar cells and panels. It is now considered as one of the biggest solar panel producers and suppliers in the world.

GCL had recently announced that it would sell some of the thousands of MWs of solar power plants that it has built in China. This would help deleverage the company’s balance sheet and allow it to free money to spend on other pursuits. The company has also announced heavy investment into the production of PERC cells and black silicon panel capacity.  The company plans to find JV partners to share the costs of building this factory which will reportedly cost more than $800 million. Note recently its biggest competitor Longi Green Energy had announced a JV with Tongwei Group to build a large poly factory in China.

The location of the factory will be in Xinjiang mainly because of the very low power prices found in that region. Given that energy costs form more than 50% of the variable production cost of the poly plant, it is vital for a company to locate its silicon plant in a province which has low electricity prices.