GCL to close polysilicon plant in Jiangsu for new base in Sichuan

Within five days, leading China-based polysilicon and wafer manufacturer GCL-Poly Energy Holdings has announced the formation of two investment funds with a capital commitment of RMB3.35 billion and RMB5 billion, respectively; the total of RMB8.35 billion equals US$1.24 billion.

The proclaimed first investment purpose of promoting the “industrial transformation and upgrading” of GCL’s polysilicon subsidiary Jiangsu Zhongneng is misleading. More relevant is the second purpose: developing a new silicon production base in Leshan in the western province of Sichuan.

As Zhu Gongshan, chairman of GCL’s board of directors, told Chinese media, the company will invest RMB6 billion (US$893 million) in a high-purity polysilicon plant with a capacity of 60,000 metric tons (MT) in Leshan, which will replace Jiangsu Zhongneng’s existing factory in Xuzhou in the eastern province of Jiangsu. Almost all of GCL’s wafer capacity in Xuzhou will also be transferred to Leshan.

The city in southern Sichuan is already home to another polysilicon giant: Sichuan Yongxiang, a subsidiary of Tongwei, has a capacity of 50,000 MT.