18, float glass giant Nanbo Group announced that the company had signed a long sales contract with a customer for silicon materials. The contract stipulates that the customer will purchase a total of 100,000 tons of solar-grade primary polysilicon materials from the company from April 2023 to December 2028. According to the current market price, the estimated sales amount will reach 19.7 billion yuan (including tax).
South Glass Group said that the contract stipulates the monthly supply of products, and the difference between monthly purchases and sales is within ± 10%, which is regarded as the normal performance of the current month's contract, and the insufficient part must be supplemented by both parties in the current year. The specific purchase amount shall be subject to the pricing principle agreed in the contract and shall be negotiated by both parties every month.
Taking into account this large order, since the resumption of production of polysilicon production line in early 2022, the total amount of long-term polysilicon sales contracts of CSG has reached 50.909 billion. After 17 years of
ups and downs, the polysilicon business construction
of CSG can be traced back to 17 years ago.
In 2006, CSG signed an agreement with the Russian National Rare Metal Research Institute to invest in the construction of a polysilicon material production base with a capacity of 4500-5000 tons by stages in Yichang, Hubei Province. The first phase investment is 780 million yuan, and 1500 tons of polysilicon production capacity will be built. At that time, the project was also selected as one of the three key projects in the 11th Five-Year Plan of Hubei Province. On August 1 of
the same year, Yichang Nanbo Silicon Material Co., Ltd. was established, and Nanbo Group formally entered the polysilicon industry. In
2008, the first phase of Yichang project was put into trial operation, and in December of that year, the first furnace of polysilicon materials with purity reaching solar grade was produced, and then in 2009, it was put into operation formally.
However, when the sword was unsheathed, the halberd was broken. In 2008, affected by the financial crisis, China's solar photovoltaic industry suffered a heavy blow, the decline in market demand and the depreciation of the euro led to most battery and module manufacturers being forced to stop production or reduce production, and the price of polysilicon fell sharply. However, Nanbo Group said in its financial report that it was still optimistic about the development of the photovoltaic industry and would continue to consolidate and establish its technological advantages and market position in the field of solar photovoltaic.
In the subsequent ups and downs of the complex development of the industry, it continued to face difficulties and continue to increase production.
The former waves are not flat, and the waves are rising again. From 2009 to 2014, with the increasing dumping of imported polysilicon, a large number of enterprises had to stop production and withdraw because the market price fell below the cost line, leaving only 15 polysilicon enterprises barely maintaining production from the original 43. Falling to the bottom of the industry development trend, did not block the pace of expansion of the company. By the end of 2014, through several expansions, the company's polysilicon production capacity reached 6000 tons, and 1000 tons of electronic grade polysilicon projects were under construction.
Also in the same year, Nanbo Group finally got rid of the loss of polysilicon business and realized a net profit of 40.54 million yuan.
At that time, it had been 9 years since CSG entered the polysilicon business. After nine years
of sharpening the sword, CSG ushered in the moment of shining the sword. The profit of polysilicon has also accelerated the confidence of the company's capacity expansion. In June 2015, CSG increased its polysilicon business again, and planned to invest 600 million yuan to expand its polysilicon production capacity by 5000 tons (from 7000 tons of solar grade to 9000 tons, and build 3000 tons of electronic grade).
However, with the outbreak of the price war of polysilicon and the release of the 531 new photovoltaic policy in 2018, the price of silicon once fell below 80 yuan/kg, a large number of silicon enterprises stopped production, and the polysilicon industry fell into a dark moment. The company's capacity expansion stopped at 9000 tons (2017), and there was little news in the following years. In January
2019, the National Energy Administration issued the Notice on Actively Promoting the Work of Wind Power and Photovoltaic Power Generation without Subsidies and Parity Access to the Internet, and the photovoltaic parity was first mentioned in the policy. Subsequently, in December of the following year, the State New Office issued the White Paper "China's Energy Development in the New Era" again, pointing out that accelerating the technological progress and cost reduction of photovoltaic power generation marked the entry of the photovoltaic industry into the era of comprehensive parity. The photovoltaic industry began to enter a period of rapid development, and the industry boom continued to drive the recovery of the polysilicon industry. After
years of twists and turns, in 2021, CSG waited for the moonlight moment. The average price of domestic polysilicon materials rose from 80000 yuan/ton at the beginning of the year to 270000 yuan/ton in early November, an increase of more than 220%. In the
first quarter of 2022, Nanbo Group announced that the company's polysilicon project had resumed production through technological transformation, with a capacity of 10000 tons. Subsequently, it was announced that 100000 tons of high-purity silicon materials would be launched in Haixi Prefecture, Qinghai Province, with an investment of 4.5 billion yuan in the first phase, and 50000 tons of production capacity would be expected to be built for standard N-type batteries. This means that if the Qinghai project is completed as expected, the polysilicon production capacity of CSG will reach 60,000 tons.
Also in 2022, CSG's polysilicon business won two major orders as soon as it resumed production. In September
2022, CSG signed a large order of 70,000 high-purity silicon raw materials with a customer. According to the market price at that time, the contract sales amount reached 21.21 billion yuan. On the 29th of the following month, CSG announced again that it would take another 33,000 tons of solar-grade primary polysilicon materials, with a total sales of 9.999 billion yuan (including tax). In 2023-2026, the
two orders locked in a total of 103,000 tons of production of CSG, with sales of 31.209 billion. At that time, the production capacity of silicon materials of CSG was only 10,000 tons, and the annual revenue of the Group in 2021 was only 13.6 billion.
Now, together with the 19.7 billion super orders announced on April 18, the total amount of long-term polysilicon sales contracts of CSG has reached 50.909 billion. CSG has once again launched the charge horn for the polysilicon business sector.
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