Longi (HK) Trading Limited (隆基香港贸易有限公司) plans to invest USD 240m (CNY 1.6bn) in the construction of a fabrication plant called Longi (Kuching) Sdn Bhd(古晋隆基) in Malaysia, according to Mr. Wang Hao (王皓), who is the Securities Affairs Representative at the subsidiary of Xi’an Longi Silicon Materials Corp.(西安隆基硅材料股份有限公司).
The facility, which is to be located at the Sama Jaya Free Industrial Zone in Kuching City, Sarawak State, will comprise production capacities of 1 GW of wafers, 500MW of monocrystalline silicon solar cells, 500MW of PV modules and 300MW of ingots.
The project, which is scheduled to become operational in the first quarter of 2017, is expected to generate annual revenues of USD 318m (CNY 2,12bn) from which it will yield a net profit of USD 13.4m (CNY 89.44m).
“The total project investment (TPI) is USD 240m and Longi Kuching is the main investor,” Wang told this news serice. “The source of funding comes from the parent company Longi Silicon Material as well as bank loans.”
Longi Silicon Materials has applied for debt finance from Industrial Bank Co Ltd, Xi’an branch (兴业银行西安分行) and the Industrial and Commercial Bank of China‘s Yunfu branch (中国工商银行云浮分行). Banks in mainland China, Hong Kong and Malaysia will also be able to get involved depending on how favorable the conditions are, Wang added.
Besides the project in Malaysia, Longi Silicon Materials has invested in setting up an integrated solar plant in an Indonesian industrial zone this year, which is expected to be completed and begin operations by the end of 2016. Considering the production costs and expected profits, Southeast Asia is viewed as a deserving target for future investments, Wang observed.
Longi Silicon Materials achieved operating income of USD 968m (CNY 6.424 bn) in the first half of 2016, which represented a 282.15% increase year-over-year. In terms of profits, the company posted a net increase of 634.2% in the space of a year, reaching H1 profits of USD 130m (CNY 866m), according to the company’s latest financial report.