Shanghai Electric to acquire 51% of GCL’s polysilicon subsidiary

Jiangsu Zhongneng’s polysilicon plant in Xuzhou, Jiangsu
By selling a 51% stake in its polysilicon subsidiary Jiangsu Zhongneng, GCL-Poly wants to raise fresh capital – Image: GCL-Poly

GCL-Poly Energy Holdings has brought Shanghai Electric Group as a major investor on board to support the growth of GCL’s subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., China’s largest polysilicon manufacturer. According to a framework agreement released on June 6, Shanghai Electric will acquire a 51% stake in Jiangsu Zhongneng’s equity.

The value of Jiangsu Zhongneng is estimated at up to RMB25 billion (USD3.9 billion).

Already on December 20, 2017, GCL announced that “certain potential investors have indicated their interest to invest in the Company’s solar material business.” At that time, GCL also considered a spin-off of the solar material business and its listing on the Shenzhen or Shanghai Stock Exchange.

State-owned Shanghai Electric is one of the largest Chinese manufacturing conglomerates, which mainly produces equipment used in nuclear, thermal and wind power plants. In a joint venture with Shenhua Group, the company entered the solar industry with the purchase of CIGS thin-film module technology from German equipment manufacturer Manz AG in 2017.

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