Canadian Solar Inc. and Suzhou GCL Photovoltaic Technology Co. Ltd., a subsidiary of GCL-Poly Energy Holdings Ltd., have entered into a joint venture agreement to build a 600 MW capacity wafer plant in Suzhou, China, dedicated to Canadian Solar's requirements. The initial 600 MW capacity will be expandable to 1.2 GW, according to the companies.
The total capital expenditure for the first phase of the project is approximately $77 million, which is expected to be financed 33.3% through the registered capital and 66.7% through debt. Under the terms of the agreement, GCL will contribute 90% of the registered equity, and Canadian Solar will contribute 10%.
