Znshine Solar and Chongqing Silian Optoelectronic Technology (Chnonqing Silian) announced to form a joint venture, Chongqing Znshine Solar Company, to strengthen both companies’ market development in central and western regions in China. The JV will also involve in building a 500MW PV module production line to increase Znshine Solar’s total production capacity from 1.2GW.

The newly established JV will start producing PV modules in March 2016. By the end of 2016, Znshine Solar will have a total of 1.7GW PV module production capacity, in which the additional 500MW will be provided from Chnonqing Znshine Solar plant. The new JV is established for improving the two companies’ production efficiency and competitiveness and is targeting mainly at the western region in China.

Patrick Lin, an analyst at Energy, pointed out that China Silian Group runs a subsidiary “Dison Silink” for providing solar PV project EPC services in several Chinese provinces. Dison Silink develops solar PV projects in the western China as well. Accordingly, Lin recognized the new JV as “a special-purpose PV module supplier for PV projects developed by Dison Silink in the western China.”

The new JV can also improve China Silian Group’s cooperation with PV module manufacturers, EPC providers and financing institutions, said Lin.