(Yicai Global) Aug. 25 -- Longi Green Energy Technology will spend CNY2.5 billion (USD365 million) to construct a photovoltaic module plant in eastern Anhui province with an annual output of 10 gigawatts, as the world’s largest supplier of monocrystalline silicon wafers expands its footprint downstream.

Wuhu Longji Photovoltaic Technology, owned by Longi's unit Longji Leye Photovoltaic Technology, will lease factory buildings and supporting facilities in the city of Wuhu and install production equipment there, the Xi’an northwestern Shaanxi province-based company said yesterday. Production is expected to start in the second half next year.

Once up and running, the plant should generate net profit of CNY263.3 million (USD38.4 million) a year on average and revenue of CNY15.4 billion (USD2.2 billion), it said. The investment will help Longi hike production of high-efficiency battery modules and enhance its competitiveness.

Although Longi already makes half of the world’s monocrystalline silicon wafers, it continues to actively expand. Just last week it said it will invest an additional CNY6.9 billion (USD1 billion) to more than double capacity at its solar wafer factory in northern Inner Mongolia Autonomous Region.

Strong demand and ever-increasing output, saw Longi log a 29.7 percent jump in net profit in the first half from the same period last year to CNY6.5 billion (USD948.7 million), according to its latest earnings report released yesterday. Revenue shot up 43.6 percent to CNY50.4 billion (USD7.3 billion)

Longi shipped 39.6 GW of monocrystalline silicon pieces in the first six months, 20.1 GW of which were for sale and 19.4 GW for its own use. Its solar panel deliveries came to 18 GW, most of which were sold to third parties.

Longi's share price [SHA:601012] closed up 0.3 percent at CNY52.85 (USD7.70) today.

Editor: Kim Taylor