(Yicai Global) Oct. 22 -- Germany’s Heraeus Photovoltaics, the world’s leading supplier of conductive silver pastes for photovoltaic cells, said it will build a new global headquarters in Shanghai to meet increasing demand in the solar panel industry and strengthen its position in the international market.

Heraeus will build a new head office in Shanghai’s Minhang district to bring research and development, production and business operations under one roof, the Hanau-based company said in a statement yesterday.

“Our new site will enable us to work even closer with our customers and will allow us to innovate faster,” said President Wen Zhou.

All the R&D facilities of its innovation center will be relocated to the new building, Heraeus said without disclosing the cost or schedule. When the new production base goes into operation, it will have annual output of silver paste of 3,000 tons.

Silver paste is an essential consumable for photovoltaic cells, accounting for 8 percent to 9 percent of their overall cost, according to a research report published by securities services provider Shenwan Hongyuan. From 2016 to 2020, China’s silver paste demand for the photovoltaic industry rose to 2,467 tons from 1,585 tons, and global demand to 2,990 tons from 2,331 tons.

Heraeus will also purchase advanced laboratory equipment and continue recruiting top talent to bolster its research capabilities, it said.

Heraeus Group is a family business with a history of more than 300 years. It established its first company in mainland China as early as 1994. In 2018, Heraeus also opened a USD120 million precious metals factory in Nanjing, China.

Editor: Futura Costaglione