Hydropower and Silicon Whole Industry Chain Development and Construction Project in Baoshan City

Name

保山市水电硅全产业链开发建设项目

Hydropower and Silicon Whole Industry Chain Development and Construction Project in Baoshan City

Industry Involved

New Materials

Site

Baoshan Industrial Park

Overview

Relying on Baoshan Industrial and Trading Park, it is planned to construct Tengchong “park in park”, Changning “park in park” and Longyang “park in park” that cover an area of about 3,350 mu on the basis of 11GW monocrystalline silicon rod of Baoshan LONGI Silicon in Longling “park in park”. The estimated investment is RMB 15.018 billion. It is proposed to attract world-class silicon material production and processing enterprises to develop 50,000 t/a high-purity polysilicon project, 5GW monocrystalline silicon project, 5GW monocrystalline silicon slicing project and 5GW monocrystalline silicon cell project. The annual output value is expected to reach RMB 17.45 billion.

Content

Construction scale: 50,000 t/a high-purity polysilicon project: 1,400 mu, investment of RMB 8 billion; 5GW monocrystalline silicon project: 300 mu, investment of RMB 2.2 billion; 5GW monocrystalline silicon rod slicing project: 750 mu, investment of RMB 1.778 billion; 5GW monocrystalline silicon cell processing project: 900 mu, investment of RMB 3.04 billion.

Content: production workshop and relevant supporting facilities.

Construction duration: 3 years

Supporting Conditions

1. Advantages and opportunities: (1) Sound silicon industry foundation.

The industrial silicon capacity in Baoshan was 232,400t in 2017, accounting for 40% of that in Yunnan Province and 10% of that in China, ranking the first in Yunnan Province. There are 12 industrial silicon manufacturing enterprises, among which, Yunnan Yongchang Silicon Industry Co., Ltd. has the capacity of 100,000 t/a and ranks third and first across China respectively in terms of yield and capacity utilization, and its equipment, environmental protection and process technology are in line with the leading level in China.

(2) Location advantage

Located on the southwest border of China and bordering with Myanmar, Vietnam and Laos, Yunnan Province is a must-pass point from China to South Asia, Southeast Asia and even to European countries. Baoshan is located nearby South Asia and in the center of western Yunnan. From Tengchong, you can arrive at the Indian Ocean through the northern Myanmar, and from the Indian Ocean to its coastal regions, there is road connecting with South Asia. It is the most convenient transport hub connecting China with international land passage in South Asia, the optimum land route connecting China with mutually beneficial strategic partners in the south and a key joint and hub on two passages and economic corridors where the first is from Kunming to Ruili and radiates to Kyaukpyu, Myanmar and the second is from Kunming to Tengchong and radiates to Myitkyina, Myanmar and connects South Asia; therefore, it enjoys unique development advantages. Baoshan has a relatively complete two-way open port system and has built Tengchong Houqiao Port, which is a national Grade-I open port. In 2018, the construction of Baoshan - Myotha (Mandalay) Economic and Trade Cooperation Zone was formally commenced in Myotha Industrial Park in Mandalay.

(3)   Advantages of Clean Energy

Baoshan has theoretical reserve of water resources of above 10 million kW, the total installed capacity of about 2.10 million kW and an annual electricity generation of around 6.5 billion kWh and is the only city in Yunnan Province with a local independent power grid. Meanwhile, Baoshan City has built an electric power network taking 220kV and 110kV power grids as backbone and connecting with five counties (cities and regions) and 35kV power grid covering all towns. It has reliable clean hydropower resource guarantee.

2. Associated industries: At present, Baoshan has 12 industrial silicon manufacturing enterprises, 28 industrial silicon furnaces with the capacity of 204,000 t/a, the installed capacity of transformer of 422,500 kVA. In 2018, the industrial silicon yield was 214,600t in the whole city. The capacity under construction is 187,000t and the capacity in the whole city will be approximately 391,000t after the construction completion.

3. Sufficient raw materials: Baoshan City has abundant silicon ore resources of fine quality. At present, the accumulated proved reserves are 49.23 million tons and prospective reserves are above 100 million tons. With the content of SiO2 of 98%, the silicon ore resources are mainly distributed in Longling County and Changning County and partially in Longyang, Tengchong and Shidian. Among which, Longling County has the identified silicon ore resources of 36.26 million tons, with the average grade of 99.2%; the potential resources are about 24.50 million tons and mainly distributed in Longxin Township, Xiangda Town and Pingda Township. Changning County has the identified silicon ore resources of 12.97 million tons, which are mainly distributed in Datianba Township.

4. Early preparations: The construction land quota and the requisition-compensation balance quota involved in the construction of “park in park” will be settled by counties (cities and regions). Management Committee of Baoshan Industrial and Trading Park will acquire land and carry out overall planning and industrial planning in a unified manner. The construction of peripheral infrastructure of “park in park” will be the responsibility of Management Committee of Baoshan Industrial and Trading Par, and that of internal infrastructure be the responsibility of the people’s government at county (city and region) level.

Investment Estimate and Fund Raising

Investment estimate: RMB 15.018 billion

Fund raising: mainly self-raising by enterprise and loan financing

Preferential Policies Applicable

On the basis of giving full play to the advantages of local power grids in Baoshan and strictly implementing preferential electricity price for hydropower and silicon integrated project in Yunnan Province, more preferential policies will be provided for new silicon material enterprises settled in Baoshan according to the principle of “one consideration for one matter”. The policies of “1+5” joint construction and sharing, “51:49” diversified ownership and “10+3PPP” financing will be continued to be implemented, and fixed-asset investment incentive will be executed according to the enterprise investment.

Market Prediction (Analysis)

Silicon material is the most important elemental semiconductor material, including polycrystalline silicon, monocrystalline silicon, silicon wafer, silicon epitaxial wafer and amorphous silicon membrane, and supports the development of communication, computer, information appliance, network technology, national defense and military industry and photovoltaic and LED industries emerged in recent years. At present, silicon in China is mainly applied in three areas: aluminum alloy, organosilicon and polycrystalline silicon. In the first three quarters of 2018, the consumption of industrial silicon in aluminum alloy was 333,000t, account for the highest proportion, 31.71%; that in organosilicon was 455,000t, accounting for 43.33%; that in polycrystalline silicon was 225,000t, accounting for 21.43%; and that in other areas was 37,000t. The consumption in polycrystalline silicon was remarkable.

In 2019, the silicon material industry will see rapid development with the increasing demand for high performance materials in the progress in social and economic development, at an annual average growth rate of 39.64%. Silicon material will be widely used in such areas as spaceflight and aviation, automotive, military industry, building, electronic, electrical, chemical industry, medicine and consumer goods.

Profit Model and Preliminary Benefit Analysis

After being completed and put into operation, these four projects are expected to generate the output value of about RMB 17.45 billion.

Risk Analysis

National advanced technologies are adopted in the project. The project complies with national industrial policies and has huge market prospect. There are no policy or market risks.

Cooperation Pattern

The investment will be made in accordance with “51:49 equity structure” mode and “1+5” joint construction mode; about RMB 3 billion is required from enterprise and government respectively.

Contact Information

Contact unit: Investment Promotion Bureau of Baoshan City

Contact: Yang Xinman

Tel.: 13708759271

Fax: 0875-2149222

E-mail: 609139664@qq.com