November 18, 2015 – Tongwei Group Co. is planning to build the world’s biggest plant to make solar cells in China’s southwestern province of Sichuan at a possible cost of about $1 billion.
The facility is expected to have capacity of 5 gigawatts of high-efficiency solar cells annually, according to an e-mailed statement. The company held a ceremony on Wednesday to mark the beginning of construction.
The plant in Shuangliu county will triple Tongwei’s total solar-cell capacity, which is estimated to reach 2.4 gigawatts by the end of this year. The plan underscores Chengdu-based Tongwei’s efforts to expand capacity after agreeing to buy a 10 percent stake in Taiwanese solar-cell producer Gintech Energy Corp. in July.
The factory, which could cost about 20 cents a watt, could be part of a medium-term plan, said Wang Xiaoting, a Hong Kong-based analyst.
“The supply glut still exists, so expansion will prompt the smallest companies to quit,” she said.
JA Solar Holdings Co. is expected to have 4 gigawatts of capacity by the end of this year, making it the world’s biggest solar-cell maker, according to BNEF data.
Tongwei said it also plans to build 10 gigawatts of photovoltaic power projects in the next three years to five years.