Shi Zhengrong Polysilicon Cool Down Overheated Investment

Domestic polysilicon investment recent rapid warming, the conservative estimate is that at least some 10,000 tons polysilicon production will start together, and the relevant stock is welcomed by the A-share market. It is in this "hot" when domestic photovoltaic industry leader, Suntech Power chairman Shi Zhengrong has poured a lot of cold water pouring - Yesterday, he had openly stated that China is not suitable for investment in polysilicon.

Shi Zhengrong in Wuxi at the "2007 China Photovoltaic Industry Summit Forum international competitiveness," said the above.

As silicon material prices continue to rise, the recent large number of domestic capital investment polysilicon field. Two weeks ago, Tianweibaobian Electric Notice that Xinguang Silicon industry to Chengdu in Sichuan Province in Xinjin County and the city of Leshan, a new 3,000-metric-ton polysilicon production projects, these two projects proposed by the Xinjin County, and in the establishment of the Leshan operation of the two new companies. According to October 2007 disclosure of the "new 3,000-metric-ton polysilicon Xinjin project feasibility report," The project to invest 2.675 billion yuan.

A few days later, LDK Solar also announced that the company is located in Xinyu City in Jiangxi Province polysilicon has begun construction of the factory, which is scheduled for completion in late 2008, to reach an annual output of 6,000 tons of polysilicon. The project is only 15,000 tons of its silicon material part of the plan. According to the timetable, in 2009 after the completion of all projects, LDK Solar will be formed 15,000 tons of silicon material capacity.

According to the recently released "China's New Energy and Industrial Annual Report 2007" shows that the current domestic construction has been completed and is planned polysilicon production capacity of up to 63,560 tons, in 2008 about 18,000 tons can be formed polysilicon production capacity.

"China photovoltaic industry in the phenomenon of the herd phenomenon, especially polysilicon now extremely overheated investment." Shi Zhengrong said yesterday that China is not suitable for manufacturing polysilicon, because electricity is too expensive, not polysilicon production consistent with the scientific development concept. In his view, the investment should go to the polysilicon Canada, the United States, Australia, and other countries relatively cheap electricity.

In this regard, the Chinese Academy of Sciences Academician Jian Shuisheng agreed. He recently wrote an article pointed out that the current production of polysilicon enterprises generally have adopted modified "Siemens methods." The use of the method, one kilowatt solar batteries about 10 kilograms of polysilicon, 5800-6000 kw power consumption needs * h, the consumption of very large. Even if the batteries used in 20 to be stable, renewable solar electricity than not to 8, is relatively low. "Now some companies are to be completed by producing 15,000 tons of polysilicon base, its power consumption will be more than a 1 million kilowatt thermal power station of the year the total power generation, Haomei of nearly 3 million tons, about Pingxiang coal mine for half of each year. "said Jian Shuisheng.

However, there are people in the trade who do not think so. A large domestic enterprises silicon responsible people told this reporter that investment is not fully silicon materials to make money, and more is considering lowering the cost of silicon. Because silicon material prices rose too powerful, can be done only with their own down the cost. "Abroad, in the 10,000-ton silicon material, if we re-thousand ton, the market's natural fluctuations in no way competitive. Do to the industry, and others on the 10,000-ton class, you have the 10,000-ton ; others costs 20 US dollars, and you have to be 20 US dollars, or even lower, in order to competition and foreign. need to know, the market, there will certainly be volatile. "the source said.

Source: 上海证券报 Chen Qijue Dec. 13, 2007