From The Cashmere Chiefs To The Omnipotent Player &Nbsp; Erdos Crossover Layout

In September 21st, Ordos issued the "Ninth board resolution announcement" in 2011, announcing that the company "invested 100 million yuan to invest in the establishment of Ordos Dongjing photovoltaic materials Co., Ltd., and continue to deepen the processing of polysilicon products, extending the original industrial chain."

According to the announcement, Ordos East crystal photovoltaic

The newly established company seems to be declaring "almost all the business segments of the PV industry chain" to the public. Once the "Cashmere bigwigs" through the "polysilicon" small test knife, is determined to push the whole sector into the photovoltaic industry.

From another perspective, Sang Yongliang, an analyst with Guotai Junan, told the Securities Daily reporters that "the layout of photovoltaic industry chain is also one of the effective ways to resolve the risk of excess capacity of polysilicon in Ordos."

From investing in polysilicon to fully enter the photovoltaic industry

Today's "Ordos" is not only the familiar one.

According to the website information of Ordos holding group, the enterprise group, which was gradually growing from the original Yi cashmere sweater factory, now operates ten leading industries, including cashmere, coal, electricity, metallurgy, chemical industry, new energy, polysilicon, salt chemical industry, real estate and overseas production.

Analysts pointed out that now fully enter the photovoltaic industry, is Erdos new energy development in the field, and this confidence must come more from the past two years, the company invested in the "polysilicon" industry taste the sweetness.

In the past two years, the intensity of Erdos investment "polysilicon" has been gradually strengthened. As early as 2008, the power metallurgy company (holding subsidiary company holding 60% of the listed company) decided that the Inner Mongolia Ordos Polysilicon Industry Co., Ltd., which owns 25% of the shares, was 125 million shares, and the pferee price was 1 yuan per share.

In 2009, Erdos has said through related announcements, "after a comprehensive analysis of the polysilicon industry and a comprehensive and in-depth study of polysilicon companies, the company believes that it is currently in the polysilicon industry.

Finally, in June of that year, the company invested 360 million yuan to complete the capital increase, accounting for 36% of the shares.

In addition, listed companies and power metallurgy companies will jointly hold a 61% stake in polysilicon (electric power metallurgy company owns 25% polysilicon companies), and listed companies will occupy 51% of the interests of polysilicon companies by direct and indirect means.

In the 2010 annual report, the company introduced "with the strengthening of China's economic construction, the demand for energy and chemical products of the company is relatively strong. During the period, the main terminal products of the company's energy and chemical industry, such as ferroalloys, calcium carbide and polycrystalline silicon, were in short supply, resulting in a price rise."

Perhaps this has strengthened Ordos's confidence in investing in polysilicon projects.

As early as the end of the 2009 annual report, only polysilicon projects with net profit of -88 million were realized. After the pilot production stage in 2010 (output of 2 tons), the annual output of the semi annual report in 2011 reached 336 tons.

Means to resolve the risk of polysilicon overcapacity

In fact, over time, the polysilicon market is returning to reason, and the boom in 2010 has cooled down.

Analysts are not worried about the Ordos project, which is in full swing.

An unnamed insider told the Securities Daily reporter that "overcapacity is the biggest risk facing the polysilicon industry, and it is also the biggest risk facing the Ordos polysilicon project."

With the rapid development of photovoltaic industry in China in recent years, the upstream polysilicon production capacity has surged from 5800 tons in 2007 to 30 thousand tons in 2010.

However, from 2007 to 2009, China's demand for polysilicon was between 3 and 50 thousand tons, and the external dependence of polysilicon was over 50%. By 2010, China's polysilicon self sufficiency rate reached 80%. Meanwhile, China's polysilicon prospect planning and production capacity reached 74 thousand and 250 tons. Compared with the global total 100 thousand tons of polysilicon demand, China's polysilicon industry is now facing serious overcapacity.

However, for the problem of excess capacity of polysilicon, Sang Yongliang, an analyst with Guotai Junan, told the Securities Daily reporter: "now Ordos plans to layout the whole photovoltaic industry chain, which seems to be one of the effective ways to solve the risk of excess capacity of polysilicon."

Looking at Ordos website, we can find a grand blueprint of circular economy. The company will take 400 thousand tons of PVC, 300 thousand tons of caustic soda and 1 million tons of cement as the main chain of industrial chain in the future.

The CO gas produced during the production of calcium carbide is advanced through the calcium carbide furnace.