(Yicai Global) May 30 -- Chinese photovoltaic giant Trina Solar said it will invest around CNY8.7 billion (USD1.2 billion) to hike its capacity to make monocrystalline bars by building a new plant and support facilities in China's southwestern Sichuan province.

Located in the Shifang Economic Development Zone, the project has a 12-month construction period and an annual production capacity of 25 gigawatts of monocrystalline bars, the Changzhou-based firm said yesterday. Total investment will be about CNY10.7 billion (USD1.5 billion), with Shifang state-owned firms providing the rest, it added.

Monocrystalline bars are made from high-purity silicon by repeated melting, crystallizing, and drawing, and have a high degree of purity and complete crystal structure. They are used in solar cell manufacturing, making products with high efficiency, long life, and stability, and are widely used in the solar industry.

The new plant will optimize Trina Solar's upstream layout in the industrial chain, lay a solid foundation for future business growth, and enhance its comprehensive competitiveness, in line with its long-term development plan and shareholders' interests, according to the company.

The investment amount and construction period are estimates based on current conditions and market environment, so the actual figures may differ, Trina Solar said, adding that they do not represent a forecast of future performance and do not constitute a performance commitment to investors. The deal will not impact the firm's financial status and operating results this year, it said.

In another statement released yesterday, Trina Solar also announced plans to buy back between CNY300 million (USD42.4 million) and CNY600 million of its own shares for no more than CNY65 (USD9.18) each. The shares will be used for employee stock ownership plans or equity incentives and transferred within three years of being repurchased, or they will be canceled, it added.

Buybacks are generally aimed at buoying a company’s stock price by removing some of its shares from the market. 

Trina Solar’s shares [SHA: 688599] fell 1.5 percent to close at CNY39.71 (USD5.61) apiece today. The wider Shanghai market ended little changed. Trina Solar’s shares have fallen 38 percent so far this year.

Founded in 1997, Trina Solar is the world's leading supplier of PV smart energy solutions with three major business segments: PV products, PV systems, and smart energy.

Editor: Martin Kadiev