(Yicai Global) Feb. 16 -- Chinese manufacturer GCL System Integration Technology plans to invest about CNY2 billion (USD292 million) on a new high-efficiency solar panel plant to increase its competitiveness, profitability, and market share.

The plant, to be built in the Funing Economic Development Zone in Jiangsu province, will have an annual capacity of 12 gigawatts of photovoltaic modules, GCL System announced yesterday. The Suzhou-based firm expects it to go into operation before Oct. 30.

Prices of raw materials in the upstream PV industry chain have gradually returned to a reasonable level from the fourth quarter of last year, boosting demand for solar panels and the earnings of manufacturers, GCL System said.

The project, which includes the plant and ancillary living facilities, covers an area of 153,300 square meters and will have a building area of 120,000 sqm, the company said.

The project will be financed from funds secured from commissions for building government projects, self-raised funds, loans from financial institutions, or project industry funds, it said.

Shares of GCL System [SHE: 002506] closed 0.9 percent lower today at CNY3.23 (47 US cents), after earlier gaining as much as 3.7 percent. The broader Shenzhen market fell 1.3 percent.

Editor: Futura Costaglione