JinkoSolar Unit Jiangxi Jinko Signs Investment Framework Deal; To Sell Xinjiang Jinko

(RTTNews) - JinkoSolar Holding Co., Ltd (JKS), a Chinese solar module manufacturer, on Wednesday announced that its subsidiary Jinko Solar Co., Ltd., called as Jiangxi Jinko, has entered into an investment framework agreement to manufacture and supply 56 GW monocrystalline silicon pull rod, silicon wafer, high-efficiency solar cells and modules for an integrated project in Shanxi, China.

Jiangxi Jinko's investment framework deal is with the Management Committee of Transformation Comprehensive Reform Demonstration Zone of Shanxi Province.

As per the agreement, Jiangxi Jinko plans to construct production lines, with a total annual production capacity of 56 GW for each of monocrystalline silicon pull rod, silicon wafer, high-efficiency solar cells and modules for a total investment of approximately RMB 56 billion.

The project has 4 phases with an annual production capacity of 14 GW for each phase. The first and second phase of the project is expected to commence in the first and second quarter of 2024 respectively, and the third and fourth phases are expected to begin in 2025.

The company also announced that Jiangxi Jinko has entered into an equity transfer agreement with Ziyang Major Industry Equity Investment Fund Partnership and Shihong Dong. As per the deal, Jiangxi Jinko has agreed to sell its 100% equity interest in unit Xinjiang Jinko Solar Co., Ltd., for a consideration RMB 4.3 billion.

The agreement is expected to reduce Jiangxi Jinko's operational costs, improve its production efficiency and optimize its facility mix.

In premarket, JinkoSolar shares were trading at $45.89, down 0.52% or $0.24 on the New York Stock Exchange.