China-based GCL-Poly Energy Holdings has quit production of sapphire ingots and will sell two factories together with production equipment in eastern China to Taiwan-based sapphire wafer maker Tera Xtal Technology.
GCL Poly's suspended sapphire ingot production due to continued falls in sapphire wafer price, the sources indicated.
Tera Xtal said it will acquire one of the factories at CNY135 million (US$22 million) and the other at CNY72 million. As prices for sapphire ingots are still in low levels, Tera Xtal will not produce sapphire ingots at the two factories, the company said. Instead, it will use them to produce sapphire wafers, with total monthly production capacity expected to reach 250,000-300,000 wafers by the end of 2013, the company said.
Tera Xtal said it currently has a total monthly production capacity of 400,000-500,000 sapphire wafers in Taiwan.
A Hong Kong-based holding company established by the chairman of GCL-Poly has subscribed to 30 million new shares issued by Tera Xtal at NT$38 per share for private placement, equivalent to a stake of about 15%.
