MEMC enters the Chinese market

MEMC is embarking on a joint venture with JA Solar to build a crystalline silicon solar cell production plant, which will further improve its downstream industrial layout and increase its integrated business model's ability to withstand risks. In the first phase of the cooperation, the two parties will build a 250MW production facility at the Yangzhou base in Jinzhou, and the project is expected to be put into production in the second half of 2011. Although specific financial information and project schedules have not yet been disclosed, both parties hope to increase production capacity to 1GW.

“We are striving to become a leading supplier of value-added processing technology and production solutions. This milestone cooperation further confirms the success of this strategy,” said Dr. Fang Peng, CEO of JA Solar. “We think the reason for MEMC The choice of JA Solar as its partner is that it recognizes the value we can provide and the strength we can provide for our partner growth strategy, and we hope that this cooperation can further enhance the sustainability of our long-term business and Profitability."

General Manager of MEMC Solar Materials Ken? According to Ken Hannah, “Over the years, we have maintained a successful strategic partnership with JA Solar. JA Solar is the ideal partner for this cooperation. JA Solar has huge production capacity, industry-leading cost structure and With a clear understanding of MEMC's business objectives, we believe that Jinao will play an important role in this cooperation."

MEMC just started supplying wafers for the semiconductor and solar industries a few years ago. Early MEMC had outsourced its wafer processing operations, but cost pressures forced the polysilicon manufacturer to recoup a large amount of wafer processing operations back to the company.

MEMC also acquired SunEdison Corporation to develop downstream project development business and cooperate with Chinese component suppliers in project construction.

By establishing a 50% joint venture between the two parties through the cooperation with Jingao, the MEMC industrial chain has been improved. MEMC will be able to provide integrated services from polysilicon production to system installation. In recent years, only REC has realized this business model. The rest of the companies are following this trend and companies want to control costs from the supply chain.

Compared with starting a completely new business on its own, MEMC prefers to reach its integrated business goals together with its strategic partners.