Shanghai Aero Auto to inject RMB 1.84 bln into solar PV industry

Jul. 23, 2009 (China Knowledge) - Shanghai Aero Auto Electromechanical Co Ltd<600151>, which develops new energy, and manufactures and distributes automobile parts, on Jul. 22 received approval from the China Securities Regulatory Commission to raise around RMB 1.84 billion through share placement for the development of the solar photovoltaic business, sources reported.

The Shanghai-listed company intends to invest RMB 1 billion of the proceeds from the issuance in an Inner Mongolia-based firm and to invest the remaining RMB 840 million in a wholly owned Shanghai-based subsidiary.

Shanghai Aero Auto Electromechanical holds a 60.34% stake in the Inner Mongolia-based firm, which currently has an assembly line with annual output of 1,500 tons of polycrystalline silicon and will start another polycrystalline silicon project producing 3,000 tons a year.

A soar cell project of the Shanghai-based subsidiary has just gone into operation.

At present, spot prices of polycrystalline silicon range from US$70 to US$80 per kilogram, whereas the highest price was US$400 per kilogram last year.

Reportedly, China has launched a program called "golden sun" to accelerate the development of domestic solar photovoltaic power generation. The plan will provide subsidies to any project developing at least 500 megawatts of solar power generation in the next two or three years.