Leading Chinese solar manufacturer JinkoSolar Holding says its principal operating subsidiary Jinko Solar Co Ltd plans to build a gigantic manufacturing project in China’s Shanxi province with total annual production capacity of 56 GW for each of monocrystalline silicon pull rod, silicon wafer, high efficiency solar cells and modules.

The management announced these plans under an investment framework agreement with the Management Committee of Transformation Comprehensive Reform Demonstration Zone of Shanxi Province.

The massive complex is expected to cost the company a total investment of RMB 56 billion ($8 billion). It will be constructed in 4 phases spread out as 14 GW annual capacity for each phase.

Phase I of the project is expected to enter production in Q1/2024, followed by phase II in Q2/2024. Remaining phases III and IV are expected to start production in 2025, the company announced in a brief announcement.

Management said the investment decision for this project is based on its strategic development needs and judgement of industry’s market prospects. Its actual implementation will factor in market development and requisite approvals.

In a related news from the company, the management said Jiangxi Jinko will sell its 100% equity interest in its wholly owned subsidiary Xinjiang Jinko Solar, for RMB 4.3 billion ($622 million) to Ziyang Major Industry Equity Investment Fund Partnership and Shihong Dong.

“The disposal is expected to reduce Jiangxi Jinko’s operational costs, improve its production efficiency and optimize its facility mix,” it explained.

In its recent Q1/2023 financial results statement, JinkoSolar said that by the end of 2023,it targets to increase its annual production capacity for mono wafer and cell to 75 GW each and 90 GW for solar modules, up from 65 GW, 55 GW and 70 GW, respectively at the end of 2022 (see JinkoSolar Shipped 13 GW+ Solar Modules In Q1/2023).