On the evening of March 29th, Follett issued a production expansion announcement, which showed that on March 29th, the 37th meeting of the Fifth Board of Directors and the annual board of directors of 2020 examined and passed the "proposal on investing in the construction of six glass projects with a daily melting capacity of 1200 tons of photovoltaic modules." It is agreed that the company and its wholly-owned subsidiary Anhui Fulette Photovoltaic Glass Co., Ltd. (hereinafter referred to as "Anhui Fulette") have a total investment of about 5.8 billion yuan to build 6 glass projects with a daily melting capacity of 1200 tons of photovoltaic modules.
Flette said that the six photovoltaic module glass projects with a daily melting capacity of 1200 tons are divided into two projects. First, the company invested about 2 billion yuan to build two photovoltaic module glass production lines and supporting processing lines with a daily melting capacity of 1200 tons in Xiuzhou District of Jiaxing City. In the second project, Anhui Fulette, a wholly-owned subsidiary of the company, invested about 3.8 billion yuan to build four photovoltaic module glass and supporting processing production lines with a daily melting capacity of 1200 tons in Fengyang County, Chuzhou City.
Follett said that this foreign investment is for the company to cope with the large-scale market demand for photovoltaic modules and to provide production capacity guarantee for the market penetration of double glass modules; at the same time, it is also beneficial for the company to take advantage of the cost advantage of large kilns and differentiated product positioning to seize the development opportunities of the photovoltaic glass market and further improve the market share of photovoltaic glass, which is in line with the company's strategic development plan. After the completion of this investment, there will be no new related party transactions and inter-industry competition.
