Motech Conducts Capital Increase to Expand Mono-Si Cell Capacity at Ma’anshan Plant
Motech has decided to conduct capital increase in Taiwan and China. The company plans to expand cell production at its Ma’anshan plant in China and at the same time increase the share capital at the parent company in Taiwan. Once the expansion at Ma’anshan plant is completed, Motech will have 3.4GW of cell capacity.
Motech announced on January 20th 2017 that its Board of Directors has approved to increase the capital by RMB 200 million. Its Chinese subsidiary, Motech Suzhou, conducted capital increase by cash for Motech Ma’anshan. The capital of Motech Ma’anshan has increased from RMB 100 million to RMB 300 million. The new funds will be used for solar cell/module expansion.
Motech explained to EnergyTrend in a telephone interview that Motech Ma’anshan is a subsidiary of Motech and already has 400MW of cell and 300MW of module capacities. But Motech Ma’anshan’s cell production lines are still in the preparation stage; only the module capacity has started to enter the mass production stage. Motech indicated that the capital increase this time will raise the capital amount for the Ma’anshan plant and will pay the necessary fund needed to set up the plant.
Motech Ma’anshan will entirely produce mono-Si cells. The mono-Si cell is expected to be put into production in 1Q17 and will achieve full production in 2Q17 to satisfy the installation boom in the Chinese market before June 30th. Meanwhile, Motech told EnergyTrend that some cells will be mono-Si PERC cells within the 400MW cell capacity, but the ratio of PERC production is not known yet.
According to Apple Daily, Motech’s total investment has reached US$ 54 million in China. Its business has been profitable for three consecutive years from 2013 to 2015 in China.
On the other hand, Motech’s Board of Directors has also approved capital increase by cash. The company will raise NT$ 500 million of funds through the issuance of 50 million ordinary shares to pay for bank loans and raise capital.