Chinese industrial conglomerate Shuangliang Group has announced that its subsidiary Shuangliang Silicon Materials (Baotou) has signed new contracts with compatriot equipment provider JSG and US-based Linton Kayex. Both deals are for the purchasing of crystal growing (pulling) furnaces and were signed on March 7. Shuangliang released this information in its latest financial report, and the story was first picked up by Chinese news outlets and other renewable energy news websites.
The contract with JSG is worth RMB 809 million and encompasses the Czochralski furnace equipment along with the complementing software and technical data. The content of the contract with Linton Kayex is basically the same, but the value is lower at RMB 621 million. It should be pointed out that Shuangliang and JSG already inked two contracts for crystal growing furnaces last year.
As a new entrant in the PV market, Shuangliang Silicon Materials wants to quickly build up its manufacturing capacity, especially for large-size wafers. The latest two contracts, which are worth RMB 1.43 billion in total value, will help the company accelerate the implementation of its strategy. However, Chinese media outlets noted that the company has committed a considerable amount of capital expenditure, and this will create financial pressure related to cash flow and solvency.