Hengdian Group DMEGC Magnetics (DMEGC Magnetics) (002056.SZ) plans to form a wholly controlled subsidiary in Inner Mongolia to manage a 2.15 billion yuan polysilicon project that is expected to produce 6,000 tons of polysilicon, reports yicai.com, citing a company filing.

Of the total investment amount, 2.05 billion yuan will consist of fixed asset investment while another 100.65 million yuan will be used to liquidate assets. DMEGC Magnetics will pay 30 percent of the total investment in cash, with the remainder to be paid with bank loans.

The completed project is expected to earn net profits of 899 million yuan on revenues of 1.86 billion yuan.