Canadian Solar and GCL-Poly Solar System Integration (China), a unit of GCL-Poly Energy, have signed an agreement to establish a joint venture to build a manufacturing site to produce crystalline silicon solar cells in Funing, Jiangsu Province, China.
Under the terms of the accord, the equity in the Joint Venture will be 80% owned by Canadian Solar while the remaining will be owned by GCL.
GCL-Poly chairman Gongshan Zhu said: "By leveraging the competitive advantages of both companies, our goal is to manufacture top quality solar cells at industry leading cost structure to deliver competitive solar energy to homes around the world."
The new solar cell plant is expected to have 300MW annual production capacity in the initial phase while the multi-crystalline cell conversion efficiency at the Funing plant is likely to reach 19% by the end of 2014.
If fully built, the new site can house an annual production capacity of up to 1.2GW of solar cells.
Canadian Solar chairman and chief executive officer Dr Shawn Qu said as GCL is a key strategic partner and major wafer supplier to Canadian Solar and the joint venture agreement further strengths the two firms' partnership.
Qu said, "We believe we are at the very early stages of solar energy adoption around the world, and we continue to see solid market demand for our products.
"This joint venture further strengthens our position as a global industry leader that can deliver quality modules to meet the growing demand in existing and emerging markets."
The Funing plant will increase Canadian Solar's annual cell manufacturing capacity total to 1,560MW, up from 1,500MW at the end of 2013.
Image: Canadian Solar and GCL-Poly to produce crystalline silicon solar cells. Photo: pakorn/Freedigitalphotos.net