- Jinko Energy and JA Solar plan to invest in polysilicon manufacturer Xnite.
- The deal will see them each get priority poly supply from the manufacturing facility.
- Both companies will each acquire a 9% stake in the inner Mongolia facility.
Solar module manufacturers Jinko Energy and JA Solar Technology plan to acquire a stake in Xinte Energy’s polysilicon manufacturing unit. The unit intends to construct a 100,000 ton per year capacity polysilicon factory within the next two years.
Jinko and JA will each acquire a 9 per cent stake for RMB315 million (US$48.8 million) in the Inner Mongolia unit of Xinte Energy. In addition, Xnite will inject RMB2.81 billion (US$435 million), potentially raising the subsidiary’s registered capital from RMB60 million (US$9.29 million) to RMB3.5 billion (US$542 million) consequent to approval from Xinte Energy’s shareholders.
In exchange for the investment, the facility will “prioritize polysilicon supply to the investors.” A polysilicon supply deal is set to be drawn up by July 18.
Under the deal, Jinko and JA Solar can demand that Xinte repurchase their 9 per cent stakes if the manufacturing plant produces below 50,000 tons of polysilicon per year in successive years. Xnite is set to publish the details of the shareholders’ vote on the proposed deal by August 6.