515 Million Yuan! Xianglu Tungsten Kicks Off 30 Billion Metres of Ultra-fine Tungsten Alloy Wire Project for Photovoltaic Products

PVTIME – On 5 September 2023, Guangdong Xianglu Tungsten Co., Ltd. (002842.SZ), one of the largest private companies in China specialising in the R&D, production and marketing of tungsten products, has launched its ultra-fine tungsten alloy wire for photovoltaic products production project in Chaozhou City, China.

According to the company, a total of 515 million yuan will be invested in this special project to achieve an annual output of 30 billion metres of ultra-fine tungsten alloy wire for photovoltaic products. The first phase of the project is expected to be operational in October 2024 and generate an annual tax of approximately 89 million yuan. The average annual revenue of the project is expected to reach 756,578,400 yuan, and the average annual net profit is expected to reach 197,822,000 yuan when fully operational.

The company stated that the newly developed ultra-fine tungsten wire for photovoltaic is a new material that is mainly used in the new energy photovoltaic industry as a consumable material for cutting. At present, the tungsten wire products are in a state of shortage due to the rapid growth of the photovoltaic industry. The demand for photovoltaic cutting wire is estimated to be more than 400 billion metres, but the mass production capacity of ultra-fine tungsten wire in China is no more than 100 billion metres. As one of the three major tungsten wire producers in China, Xianglu Tungsten’s R&D project on ultra-fine tungsten wire for photovoltaics, which was launched in 2022, has achieved satisfactory results in preliminary research and small-scale trial production. And the new project is expected to optimise the company’s product mix and create new revenue opportunities.

In August 2023, Xianglu Tungsten had announced that it would issue shares for specific purposes to raise funds totalling not more than 840,887,100 yuan. After deducting the issue costs, 401,141,100 yuan will be used for this ultra-fine tungsten alloy wire production project, 187,746,000 yuan will be used for the technology upgrade project (Phase II) and 252,000,000 yuan will be used for additional working capital.

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