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Tongwei announces $3.9 billion investment to boost silicon production

Tongwei Group has revealed its intentions to invest 28 billion yuan ($3.9 billion) in expanding its production capacity of industrial silicon and high-purity silicon in Ordos City, China.

The expansion will be carried out in two phases. In the first phase, Tongwei Group aims to establish a 200,000-ton capacity for industrial silicon and a 200,000-ton high-purity silicon facility.

This phase’s estimated investment ranges from 13 to 14 billion yuan ($2-2.1 billion), subject to project implementation.

The second phase involves the construction of a 300,000-ton industrial silicon facility and a 200,000-ton high-purity silicon project, contingent upon favorable market conditions.

Each phase is projected to take between 15 to 18 months for completion. The company aims to have the first phase operational by December 2025, while the timeline for the second phase remains uncertain.

The proposed location for the project is Ordos City’s Zhungeer Economic Development Zone. With a planned area of about 5,500 acres, the project’s land will be divided into two sections.

The first phase will occupy around 2,500 acres, and the allocation of this land will be conducted through public bidding.

Tongwei Group acknowledges the potential financial risks associated with such a substantial investment and the challenges that may arise in terms of funding. To mitigate these risks, the company plans to utilize its own funds and secure loans from financial institutions, ensuring the smooth implementation of the project.

Tongwei Group’s long-term aspiration is to become a leading global clean energy operator. The company has already established itself as a key player in the PV industry by creating a vertically integrated value chain, encompassing upstream silicon production to downstream solar power plants.

With this new investment project, Tongwei Group aims to leverage the abundant natural resources and well-established PV industry chain advantages present in the Inner Mongolia Autonomous Region.

By further developing its high-purity crystalline silicon business, the company seeks to solidify its position as a prominent global player. The project aligns with Tongwei Group’s overall strategic goals and represents a significant step towards achieving long-term sustainable growth in the PV sector.

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