(Yicai) March 13 -- Aiko Solar Energy, one of China's major suppliers of photovoltaic equipment, will invest about CNY2.7 billion (USD377.5 million) to revamp its old plant to make more efficient tunnel oxide passivated contact cells.

The company will install new equipment and renovate existing facilities to remodel a plant in Yiwu to achieve an annual capacity of 25 gigawatts of solar cells, the Zhejiang province-based firm announced yesterday. The project should be kicked off next month and it should come on stream in the second half.

Amid an overcapacity of older P-type solar cells and quick technological development, Chinese cell suppliers such as Aiko are upgrading to more efficient N-type cells to keep up with the competition.

Aiko added that it will change the product type of the plant to TOPCon cells which boast better photoelectric conversion efficiency than the current passivated emitter and rear contact cells to achieve a larger market demand and better economic benefits.

Despite the expected technological leap, Aiko's stock price [SHA: 600732] closed 1.2 percent lower at CNY15.5 (USD2.20).

Editor: Emmi Laine