(Yicai Global) Oct. 25 -- Shares of GCL System Integration Technology rose after the Chinese photovoltaic panel maker revealed plans to spend CNY8 billion (USD1.1 billion) building a plant to make new-generation high-efficiency solar cells for its PV panel production base.

After surging by as much as 8.6 percent earlier today, GCLSI [SHE: 002506] closed up 5.9 percent at CNY3.59 (49 US cents) a share. The broader Shenzhen market came off 0.5 percent.

The new plant, to be built in two phases in Wuhu, Anhui province, will have an annual capacity of 20 gigawatts of new-gen N-type tunneling oxide passivated contact high-efficiency solar cells, Suzhou-based GCLSI said in a statement late yesterday. It will supply the firm’s solar panel plant in neighboring Hefei, which began production early this month, GCLSI said.

The project will close the gap between GCLSI's cell and panel production, reduce supply chain risks, boost gross margins, and enhance the firm’s competitiveness, it added.

With investment of CNY3.5 billion, the plant’s first phase will start construction this year and have a capacity of 10 GW per year when completed. The second phase, costing CNY4.5 billion, will break ground in 2024 and add the remaining planned capacity. Funding will come from GCLSI, loans, and industrial funds, it said.

Under the agreement, Wuhu will build a workshop and rent it to GCLSI to save money, and in return, GCLSI will help the local government bring in other businesses that make PV panels, glass, and other items to the industrial park where the plant will be located, the firm noted.

Last week, GCLSI said its Hefei base reached its designed annual capacity of 15 GW of high-efficiency PV panels a year after several weeks of trial production. The photoelectric conversion efficiency of the firm’s N-type TOPCon panels topped 22 percent, it added.

Editor: Futura Costaglione