Longji's capacity expansion announced in two days that it will invest 6.5 billion yuan to build an annual 30GW wafer project.

SMM News: Longji shares (601012.SH) capacity expansion action constantly. On the evening of September 22nd, the company announced that it planned to invest 4 billion yuan (excluding liquidity) to build Qujing (Phase II) annual 20GW single crystal silicon rod and wafer project, just the day before, the company had just announced that it planned to invest 2.5 billion yuan (including working capital) to build Lijiang (Phase III) annual 10GW single crystal silicon rod project.

"the recent investment is considering the increasing market demand, the industry will usher in the peak of installation and integration in the second half of the year, and the impact of the epidemic on the global market is gradually weakening. At present, high-quality production capacity in the market is still in a state of scarcity, Longji shares choose to expand high-quality production capacity is not only caused by market demand, but also the choice for enterprises to reduce costs and increase efficiency. " Company sources said in an interview with the Financial Associated Press that although Longji has continuous investment plans to increase production capacity in the past two years, the final completion and signing of the plan is also closely combined with market demand.

For the successive production expansion plans, Longji said in the announcement that after the project is put into production, it will help the company to further enhance the production capacity of efficient monocrystalline silicon rods and wafers, seize opportunities for the development of the photovoltaic market, and constantly improve market scale and competitiveness.

Notice shows that Longji shares of the latest two projects by wholly-owned subsidiaries Qujing Longji, Huaping Longji as the main body of investment and operation. The Financial Associated Press reporter noted that Longji signed a project investment agreement with Qujing on December 6, 2019 to reach a cooperation intention on the annual production of 10GW single crystal silicon rods and wafers (the first phase of the project). On July 26th and April 3rd, 2018, we signed an investment agreement with Lijiang on the annual 5GW single crystal silicon rod construction project (phase I project) and the annual 6GW single crystal silicon rod construction project (phase II project).

A reporter from the Financial Associated Press learned that up to now, Longji shares have invested far more than 20 billion yuan in Yunnan, and the main layout areas are Qujing City, Baoshan City, Lijiang City and Chuxiong Prefecture. Up to now, 11 silicon photovoltaic projects have been completed and put into production in Yunnan Province, which have formed single crystal silicon rod production capacity 45.2GW, single crystal silicon wafer production capacity 31GW, photovoltaic module production capacity 200MW. Eleven projects are under construction, which are expected to add 180000 tons of polysilicon production capacity, monocrystalline silicon rod capacity 35.6GW, monocrystalline silicon wafer production capacity 46.6GW, photovoltaic module 10GW.