(Yicai Global) Nov. 26 -- Global solar energy equipment giant Longi Green Energy Technology will invest CNY2.5 billion (USD355 million) to build a solar monocrystalline silicon rod factory with an annual capacity of 10 gigawatts in Southwest China's Yunnan province, the firm announced yesterday.

The news propelled the Xi'an Shaanxi province-based company's shares [SHA:601012] up 2.02 percent to CNY23.21 (USD3.29) per share in afternoon trading as of press time.

Longi is the world's largest monocrystalline silicon wafer maker, with an about 40 percent market share. Its annual solar module capacity is projected to reach 16GW this year, 25GW next year and 30GW in 2021 to further entrench its industry lead, per a capacity expansion plan the firm released early this year.

The company penned a project investment agreement on Nov. 23 with the government of Tengchong in Yunnan, which sits adjacent to China's border with Myanmar, the announcement stated, adding the firm's investment will mainly go to buying equipment and building part of the supporting facilities or for use as working capital for the project, which the Tengchong government will provide with a 15-year lease for plants and supporting facilities.

Longi will set up a local company to oversee implementation and operation of the facility, which is expected to start production by the end of next year, per the announcement.

Yunnan abounds in electric power and solar energy, and its industrial silicon yield ranks among the top in China, the company noted, adding the province is a core construction area for the Bangladesh-China-India-Myanmar Economic Corridor and enjoys exceptional advantages for developing an efficient single crystal photovoltaic entire industry chain.

Editor: Ben Armour