Shuangliang Eco-Energy Systems Co. Ltd. announced on April 6 that it will ink a cooperative framework agreement with the Management Committee of Baotou National Rare Earth Hi-Tech Industrial Development Zone to set up a production plant for high-efficiency PV modules. The annual total production capacity of the plant is set at 20GW, and the total investment in the plant is estimated at RMB 5 billion. As the name indicates, the development zone is situated within China’s Inner Mongolia Autonomous Region. The announcement was also first picked up by other Chinese news outlets.

The plant will be developed in two phases. The first phase will include 5GW of production capacity (i.e., production lines, workshops, etc.), a warehouse, an office building, a wastewater treatment facility, and a parking lot. The investment in the first phase is estimated at RMB 1.5 billion, of which RMB 720 million will cover the costs of fixed assets. The construction period for the first phase is expected to last two years. Turning to the second phase that will include the remaining 15GW of production capacity, Shuangliang said that it will commence following the initiation of the first phase. Furthermore, the length of the development period for the second phase will depend on the future market situation.

Shuangliang said that over many years it has captured a large number of customers in the electric power industry with its businesses related to energy-saving and water-saving solutions. Moreover, with the support from the Chinese government, the company has rapidly accumulated a vast amount of experience in the PV industry as it develops, manufactures, and sells related equipment and c-Si wafers. Starting from its existing business unit that supplies large-size mono-Si wafers, Shuangliang will be building out its own industry chain for PV products. The latest module manufacturing project in Baotou will thus expand the company’s capabilities and presence simultaneously in the upstream and downstream sections of the supply chain.

Also in related news, Shuangliang Eco-Energy Systems will soon be signing an agreement with Yujing Machinery Co. Ltd., Yongxin New Materials Co. Ltd., and the Yancheng Economic and Technological Development Zone to form a joint venture for wafer production. The joint venture will be based in Yancheng (China’s Jiangsu Province) and have an annual production capacity of 25GW for large-size wafers.