Risen Energy announced on April 22 that it will set up 3GW of annual production capacity for high-efficiency PV modules in Guyang County of Baotou, which is a city in China’s Inner Mongolia Autonomous Region. This project will be gradually implemented as part of the company’s overall plan to vertically integrate its manufacturing operations, meet downstream demand, and raise fresh capital. Hence, its development schedule will depend on market condition. Risen said the development of the project will be carried out by its local subsidiary in Baotou. The total investment in the project is estimated to reach around RMB 730 million. Risen’s announcement was first reported by local Chinese news outlets and other renewable energy websites.
Risen signed an investment framework agreement with the government of Baotou and an investment agreement with the government of Guyang near the end of 2021. Under these agreements, Risen is to set up 200,000 metric tons of annual production capacity for metallic silicon, 150,000 metric tons of annual production capacity for high-purity silicon, and 10GW of annual production capacity for growing silicon crystal used in N-type PV products, and 3GW of annual production capacity for 3GW of PV modules.
Risen said that the main rationale behind these investments is to expand production capacity and enhance the degree of vertical integration. Ultimately, the company wants to take steps to ensure profit growth and become more resistant to various risks. The new manufacturing projects are expected to laid a foundation for sustained, rapid, and stable growth. They fit into the company’s capacity expansion strategy and enable the company to retain its advantages with respect to technology and product offerings. Furthermore, the new projects are being undertaken in response to the rising demand for renewable energy. Scaling up production and improving competitiveness are essential in capturing opportunities in the growing global market for solar PV. Once up and running, the new production facilities in Baotou will certainly contribute to the company’s revenue generation and long-term planning.