Jinko Energy and JA Solar Technology are both intending to buy a share in the Xinte Energy business, which plans to build a 100,000-ton-annual-capacity polysilicon fab in two years.
The Chinese manufacturers will each pay RMB315 million (US$48.8 million) for a 9% share in TBEA-owned poly maker Xinte Energy’s Inner Mongolia Xinte business. With an additional RMB2.81 billion (US$435 million) investment from the parent firm, the subsidiary’s registered capital will increase from RMB60 million (US$9.29 million) to RMB3.5 billion (US$542 million), if Xinte Energy shareholders agree with the proposal.
Under the terms of the proposed investment, Jinko and JA Solar will have the right to demand that Xinte buy their 9 percent interests if the manufacturing facility produces less than 50,000 tonnes of polysilicon each year for two years in a row. According to Xinte, such a project would cost no more than RMB857 million (US$133 million). Further details of the proposal will be released in August.
