Sunvim changes investment strategy from textiles to solar

Shandong, China’s Sunvim Group (SHE:002083) recently said it plans to invest RMB 465.47 million ($68.1 million) into silicon-free CIGSSe (copper indium gallium sulfur selenide) thin-film solar module research, development and production.

The funds are expected to come from a previous share issuance of RMB 1.26 billion from December 2007. Sunvim specializes in home textiles but has been moving into the chemical industry, thermoelectricity and, most recently, the solar market. It initially planned to use the total RMB 1.26 billion on textile projects, and has reportedly invested RMB 794.16 million on such projects.

However, the company said it’s now inclined to invest in solar due to lack of demand from the global textile market. Recently, the company spent RMB 544 million in its subsidiary Sunvim Photovoltaic Technology, which is expected to be in charge of the CIGSSe thin-film solar project.

Plans for the project include two production lines for solar cell components, with a combined production capacity of 60 megawatts. Germany’s Johanna Solar Technology and its founder IFE have jointly been awarded the contract for the factory, to be completed in the second quarter of 2009.

The module production plant, to be built in Gaomi in the Chinese province of Shandong, is expected to use CIGSSe technology developed in Africa and refined at a Johanna production plan.

In 2007, Johanna Solar Technology, which manufactures thin-film solar modules, licensed distribution rights for up to 80 percent of its CIGSSe thin-film solar modules to aleo solar, also of Germany (see Johanna Solar CIGSSe modules to be distributed by aleo).

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