Taipei,Oct.4,2012(CENS)--GCL-Poly Energy Holdings Ltd.Executive President Shu Hua recently said mainland China authorities has approved a joint venture plan of his company and the Hon Hai Group to open a solar power plant in Datong City of Shanxi Province.
Shu said the two companies will start discussing details of the cooperation deal in the fourth quarter at the earliest.
Industry executives estimated investment in the 310megawatt power plant at around RMB3 billion(US$476 million at US$1:RMB6.3).
Shu's company,headquartered in mainland China,is currently the worlda??s No.1 supplier of polycrystalline silicon and silicon wafers,the raw materials for making solar cells.
Industry executives estimated the two companies would open a new company to run the plant and share the profit.They pointed out that the solar-power plant venture is the first that involves gigantic enterprises on the two sides of the Taiwan Straits.
Hon Hai's Foxconn Electronics Inc.will make solar cells and modules for the power plant while GCL-Poly will supply silicon wafers.
Industry executives pointed out that investment in solar-power plants still promise return of about 8-10%at a time when making solar-energy components is already profitless.Besides,the mainland's 12th Five Year Plan is vigorously pushing for solar-power plant investment.
The joint venture was originally planned to enter into construction in the fourth quarter last year.However,market downturn held up the project.
In addition to Hon Hai,the UMC Group is another gigantic enterprise to develop presence in the mainland's solar-power plant market,planning the investments mostly in Shandong Province.
Solar Power Plant Venture of GCL-Poly and Hon Hai Group
Content Description
Location Datong,Shanxi Province
Generation volume 310MW
Investment capital An estimated RMB3 billion
Progress Discussing details this quarter at earliest
Significance Cross industry cooperation of the two sides of the Taiwan Straits
Sources:GCL-Poly and industry executives
