Sign 6.5 billion yuan monocrystalline silicon procurement contract with Central subsidiary Trina Solar: lock in the source of raw materials next year to guarantee operation

SMM: on the evening of November 19th, Trina Solar Energy (688599.SH) announced that the company intends to purchase 210size single crystal wafers from Ring Europe International, a subsidiary of Central shares (002129.SZ), from January to December 2021, with a total quantity of not less than 1.2 billion wafers, with an estimated total contract value of about 6.552 billion yuan.

Gao Jifan, chairman of Trina Solar Energy, told the Financial Associated Press that the purchase of no less than 1.2 billion pieces of 210-size monocrystalline silicon wafers will provide a strong guarantee for the planned landing of Trina photovoltaic cells and modules and the supply of supreme series of ultra-high power components. to meet the needs of more customers for ultra-high power components in a timely manner, this will successfully lock in the source of upstream raw materials for Trina Solar. So that the operation of enterprises next year has been guaranteed.

A reporter from the Financial Associated Press noted that Trina Solar Energy has signed a number of agreements for the purchase of large component raw materials in the last week.

On the evening of November 15, Trina Solar Energy announced that it signed a contract for the sale of photovoltaic coated glass with 002623.SZ. It is estimated that the total amount of the contract is about 2.1 billion yuan (including tax).

On November 17th, Trina Solar announced that it signed a strategic cooperation framework agreement on silicon materials with a subsidiary of 600438.SH, which intends to purchase a total of 72000 tons of polysilicon products from Tonway from 2021 to 2023. At the same time, it has invested 2.1 billion yuan to cooperate with Tongwei Co., Ltd. to build a project with an annual output of 40, 000 tons of high purity crystal silicon, an annual 15GW pull rod project, an annual 15GW chip project and a 15GW high efficiency crystal silicon battery project.

According to people related to Trina Solar Energy, starting from building the 210 series component industry chain and 600W + ecological alliance, the company cooperates with Central shares, computer numerical Control and other silicon wafer enterprises, battery chips join hands with Tongwei shares, and auxiliary materials hold hands with the photovoltaic glass enterprise Yamaton, all based on 210's cooperation in promotion and technology, around 210 series components to do some industrial upstream and downstream layout. The signing of this contract with Central shares fully demonstrates the supply capacity of the photovoltaic 210 module industry chain.

According to the Financial Associated Press, the current production capacity of Trina Solar 210series components is about 10GW, which is expected to reach more than 40 GW, by the end of 2021, which greatly exceeds the plan of this year's listing prospectus. The company's IPO prospectus estimates that Trina Solar 210 components will have a production capacity of about 21GW by the end of 2021 and about 31GW by the end of 2022.

In addition, according to industry-related information, Oriental Risheng and Aixu Group, which also manufactures 210series components with Trina Solar, also have plans to expand production. Oriental Risheng mentioned at the industry conference in August this year that it would expand the production capacity of 210components, and it is expected that there will be an expansion of 15GW production in 2021.

However, photovoltaic industry insiders also told the Financial Associated Press that at present, 182 series and 210 series of large-size photovoltaic wafer modules have formed two camps, and the pros and cons of the products still need to be verified by the market, but the current trend of 210 series components has been gradually recognized by the industry, and the large-scale industrial chain layout of related enterprises is not surprising.