Wuxi Shangji Automation Co. Ltd. announced on August 15 that it plans to build a new energy industrial park in Xuzhou Economic and Technological Development Zone, which is a part of China’s Jiangsu Province. The industrial park will accommodate 25GW per year of production capacity for mono-Si wafer slicing and 24GW per year of production capacity for high-efficiency N-type cells. The total investment in this project is estimated to reach RMB 15 billion. This announcement was first picked up by other Chinese renewable energy news outlets.
The industrial park will be development in three phases. The first phase will set up the entire production capacity for mono-Si wafer slicing. The second phase will set up 14GW of cell production capacity. The final phase will add the remaining cell production capacity.
Due to the needs related to its long-term growth, Shangji build up the scale of its existing business operation related to mono-Si PV products. The company will thus further raise the production capacity for mono-Si wafer slicing. Moreover, it will establish a presence in the cell section of the supply chain for PV products by setting up the production capacity for high-efficiency N-type cells.
Shangji said that this project is a critical part of its vertical integration strategy. The company will leverage the local policy incentives and industrial infrastructure of Xuzhou to not only scale up production but also extend its presence into the downstream part of the supply chain. Shangji currently plans to acquire the capability to manufacture TOPCon and HJT cells, both of which belong to the larger N-type category.
Furthermore, Shangji said the investment in the new energy industrial park will have no structural effect on its main business operations. The investment will also not result in transactions among affiliate companies nor competitions among them. Hence, the Xuzhou project will not negatively affect the interests of its listed companies and their shareholders.
According to the reporting from other renewable energy news outlets, Shangji has also recently announced a polysilicon production project in China’s Inner Mongolia Autonomous Region. The company intends to invest RMB 6 billion to set up 50,000 metric tons per year of production capacity for polysilicon.