Home / Business and Economy / China Polysilicon Giants Form Rescue Firm Amid Oversupply
China Polysilicon Giants Form Rescue Firm Amid Oversupply
10 Dec
Summary
- Polysilicon makers established an acquisition company to address industry oversupply.
- The new firm, Beijing Guanghe Qiancheng Technology, has 3 billion yuan in assets.
- Plans are discussed to acquire and shut down 1 million metric tons of capacity.
Chinese polysilicon manufacturers have initiated a significant move to combat industry oversupply by forming a joint acquisition company. Registered as Beijing Guanghe Qiancheng Technology, this new entity boasts 3 billion yuan in registered assets and involves 10 shareholders, aiming to explore strategic cooperation for market expansion and production capacity optimization.
The initiative, backed by top polysilicon producer Tongwei, seeks to address a critical overcapacity issue within the solar manufacturing sector. Discussions are reportedly underway for a substantial fund, potentially reaching 50 billion yuan, to acquire and decommission at least 1 million metric tons of lower-quality polysilicon production capacity.
This move aligns with Beijing's broader efforts to curb excess capacity and competition across various industries. However, analysts note potential challenges in securing funding and overcoming resistance from local governments regarding capacity shutdowns, signaling a complex path ahead for industry restructuring.
