CEPAI Group Co., Ltd. , https://www.jscepai.com
Sichuan Leshan polysilicon recruitment season has started
The Sichuan Leshan polysilicon recruitment season has officially begun. Over the years, polysilicon prices have seen dramatic fluctuations, often referred to as a "high platform plunge." In 2007, the price was as high as 3.5 million yuan per ton, but it later dropped to 1.8 million, then 700,000, and finally 300,000 yuan. Last year, the price fell below the cost of production at just 110,000 yuan per ton. However, recent recovery has pushed prices above 160,000 yuan per ton, bringing renewed hope to many producers in the industry.
This rebound has not only been driven by market forces but also by supportive policies. Following the release of the “Photovoltaic Country Eight†last year, Sichuan province introduced its own implementation plan in late February this year to promote the healthy development of the photovoltaic industry. Such measures signal a long-term commitment to the sector.
Despite these positive signs, some industry players remain cautious. Liu Hanyuan, a director of Tongwei Group, noted that while the market is showing signs of improvement, it’s still too early to say spring has truly arrived. “A few years ago, people were talking about a spring that never came,†he said. “I even predicted it would happen quickly last November, but after the winter passed, it was still cold.â€
To stay competitive, companies are investing heavily in technological upgrades. Yongxiang, for example, has allocated over 600 million yuan for cold-hydrogenation technology transformation. According to Chairman Feng Dezhi, this initiative aims to significantly reduce costs, with target production costs now reaching 110,000 yuan per ton. This kind of innovation is critical in an industry where margins are thin and competition is fierce.
In 2010, when the company first started operations, it faced an industrial downturn. After more than a year of challenges, production had to be suspended. During this period, the company conducted extensive research, both domestically and internationally, to adopt the best equipment and technologies. The technical reform process involved multiple revisions and expert consultations, reflecting a commitment to quality and efficiency.
Leshan Tianwei's 2013 semi-annual report highlighted strategic adjustments in its layout, indicating a shift in focus. Meanwhile, two major players in the Hi-tech Zone—Shin Kong Silicon and Dongfang Gas—have either reorganized or are considering mergers. Shin Kong Silicon, which once operated under the name "Huangpu Military Academy" of the polysilicon industry, is exploring options to move away from the Leshan High-tech Zone.
Deng Guiyin, director of the Leshan City Economic and Trade Commission, mentioned that the city plans to optimize the layout of its polysilicon industry, shifting operations from Emei and the Leshan Hi-tech Zone to Wutong Bridge and Qianwei. This move is expected to improve efficiency and resource allocation.
With over 20 polysilicon and photovoltaic backbone enterprises, along with more than 30 related companies, most of them are located within the "One District, Three Parks" area of the Leshan Hi-tech Zone. As demand continues to rise, recruitment efforts are intensifying. For instance, Leshan Xintianyuan Solar Energy Technology Co., Ltd. is currently recruiting, having already hired 600 people and planning to add another 400 to meet production needs.
Looking ahead, the domestic photovoltaic market is expected to grow significantly. In 2014, China aimed to install 14 GW of new solar capacity, up from the previous year. Each additional 1 GW of installed capacity requires approximately 20,000 tons of polysilicon, according to Feng Dezhi. With government support and growing demand, the industry is on a path toward stability and growth.
According to the State Council's policy, China aims to reach 35 GW of total installed photovoltaic capacity by 2015. This means an average of 10 GW of new capacity will be added annually between 2013 and 2015. While price volatility remains a challenge, the industry is gradually stabilizing. Companies with cost advantages are likely to resume production, and the phase-out of outdated facilities will help maintain market balance.
Feng Dezhi believes that the future of the industry lies in technological innovation and rational business practices. “We are most hopeful for the expansion of terminal demand,†he said, emphasizing the importance of sustainable growth and long-term strategies.