Shuangliang Energy Saving signs 2.251 billion Yuan single Crystal Furnace purchase contract will be used for Baotou large size single Crystal Silicon Wafer Project

According to the announcement issued by Shuangliang Energy Saving, on May 18, the wholly-owned subsidiary Shuangliang Silicon material (Baotou) signed a single crystal furnace sales contract with Jingsheng Mechanical and Electrical Co., Ltd., and Liancheng Kax Technology Co., Ltd. the contract amount is 1.405 billion yuan and 846 million yuan respectively. The contract object is the Czochralski single crystal furnace, which will be used in the company's Baotou large-size single crystal wafer project. It is worth mentioning that the investment in the purchase of single crystal furnace equipment has exceeded the total business income of Shuangliang Energy Saving last year.

In this regard, Shuangliang energy-saving sources told the Financial Associated Press that the company's silicon wafer project will achieve the first batch of production capacity by the end of this year. At present, the prospect of the downstream photovoltaic market is good, so it is optimistic about the future profit of the project.

It is worth mentioning that Shuangliang originally focused on the production of polysilicon reduction furnace system, which has provided more than 300 large-scale high-efficiency reduction furnaces for silicon enterprises in the photovoltaic industry in the past three years, accounting for a relatively high market share in the industry. However, with the expansion of the photovoltaic industry in 2020, Shuangliang energy conservation aims at the high profits of the photovoltaic single crystal silicon wafer industry, and actively cut in.

Among them, on March 14 this year, Shuangliang signed a cooperation agreement with the people's Government of Baotou City and the Management Committee of Baotou rare Earth High-tech Industrial Development Zone to build a total 40GW monocrystalline silicon project in Baotou rare Earth High-tech Zone in two phases. The first phase of the total investment of 7 billion yuan, the completion of the annual production of 20GW crystal, 20GW chip project, after all reached production in the third year, it is estimated that the average annual operating income will reach 10.8 billion yuan.

Since 2021, leading photovoltaic enterprises such as Xiexin integration have been stepping up efforts to expand the production of silicon wafers. People's Government of Qidong City, Jiangsu Province, to invest in the construction of 20GW photovoltaic cells, modules and supporting photovoltaic equipment project in Qidong Economic Development Zone of Jiangsu Province; on March 12th, Longji Leye, a wholly-owned subsidiary of Longji shares, signed the Investment Agreement on Annual 5GW single Crystal Battery Manufacturing Project with the Management Committee of Yinchuan Economic and technological Development Zone.

Photovoltaic industry insiders told the Financial Associated Press that at present, component companies are scrambling for goods in the market, aggravating the sharp rise in silicon wafer prices and artificially causing silicon wafers to be tight, but this does not fully reflect the normal supply and demand of the industrial chain. "judging from the current rate of enterprise production expansion, it will be released centrally in the second half of next year, but according to the calculation of the installed capacity of photovoltaic, this wave of production capacity will be far greater than the market demand, which will lead to a crisis of overcapacity. Therefore, it is suggested that photovoltaic upstream industry chain enterprises should maintain a certain degree of rationality in expanding production." The industry insiders said.