August 5 – Hengdian Group DMEGC Magnetics (002056) plans to invest four billion yuan in cash and bank loans on a polysilicon and photovoltaic production project with annual capacity of 6,000 tons in Wuhai, a prefecture-level city in Inner Mongolia province, reports nbd.com, citing a company filing. The project will start this month and will end in December 2012.

The Wuhai municipal government will provide 200 million tons of electricity and coal resources necessary for the project, and DMEGC Magnetics will also benefit from its preferential tax policy.

The proposed investment will effectively resolve the fluctuations in raw material prices of China’s photovoltaic industry, lowering the costs for its solar cells, the source claimed.

DMEGC Magnetics had total assets of 4.4 billion yuan at the end of the second quarter in 2011.

According to some analysts, China’s policies are tilting in favor of its photovoltaic industry, and the industry has taken note.

Source:capitalvue