China's DMEGC Gains on USD1.4 Billion Plan to More Than Treble Solar Cell Capacity(Yicai Global) Nov. 30 -- Shares in Hengdian Group DMEGC Magnetics advanced today after the leading Chinese supplier of permanent ferrite magnets said it will invest CNY10 billion (USD1.4 billion) to build a photovoltaic cell factory that will hike its current output by three-and-a-half times and consolidate its foothold in the renewable energy sector.
DMEGC’s share price [SHE: 002056] was trading up 2.3 percent at CNY19.34 (USD2.71) as of 11.30 a.m. China time today. Earlier in the day it surged 4.2 percent to hit CNY19.77.
The facility, which will be located in the Yibin High-tech Industrial Park in southwestern Sichuan province, will have an annual capacity of 20 gigawatts of N-type tunnel oxide passivated contact high-efficiency solar cells, the Hengdian, southeastern Zhejiang province-based firm said yesterday, citing the deal signed with the management committee of the industrial park that day.
Construction will take place in three phases, it said. The first phase, costing CNY3 billion (USD420 million), should be completed next year and will have a yearly output of 6 GW. The second phase, with a similar capacity and cost, will start construction next year. No timetable was given for the third phase.
TopCon solar cells have a higher photoelectric conversion efficiency and demand is growing. China currently has 49.4 GW of TopCon cell production capacity, 60.5 GW under construction and 206 GW in the planning, according to metals information provider Shanghai Metals Market.
DMEGC, which is the largest producer of soft and hard ferrite magnets in China, has been actively expanding into the renewable energy sector in recent years, including electric car batteries as well as photovoltaic wafers, cells and panels.
Revenue from its PV business accounted for 62.5 percent of total earnings in the first half, an executive said at an investor event last month. DMEGC has the capacity to produce 8 GW of solar cells and 6 GW of panels at the moment. Its PV panel output is expected to double to 9 GW next year from this year.
Editor: Kim Taylor
