Tongwei and Longi announce polysilicon supply deal

China’s Tongwei and Longi Green Energy Technology have announced a new polysilicon supply deal under which Tongwei will sell 4,000 mt of polysilicon to Longi in 2018, followed by 21,000 mt in 2019, and 30,000 mt in 2020. Tongwei expects the deal to generate a net profit of CNY 132 million in 2018, CNY 694 million in 2019, and CNY 992 million in 2020, subject to fluctuating polysilicon prices and production costs. The deal follows Longi’s announcement of its intention to triple its wafer production capacity to 45 GW by 2020. In March 2017, Tongwei’s subsidiary, Sichuan Yonxiang, unveiled a new joint venture (JV) with Longi to set up a polysilicon production facility in China’s Sichuan province with a yearly output capacity of 50,000 mt.

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