Xinyi Group plans to invest US$11 billion in Indonesian quartz sand industry

According to local media reports, Indonesian Investment Minister Bahlil Lahadalia recently stated that Chinese glass giant Xinyi Group plans to invest US$11 billion (78.5 billion yuan) in the downstream industry of quartz sand in Rempang Eco-City, Batam Island, Riau Province.

Earlier this week, Bahlil flew to China to meet with potential investors, including Xinyi Group, which makes auto glass and solar panels.

"In my opinion, Xinyi Group is one of the world's leading industrial companies and if they could, they would invest in Rempang," Bahlil said in a press statement.

During the visit, the minister indicated that Indonesia intends to obtain more added value of goods by processing raw materials domestically. A downstream industry for nickel is already underway, and the resource-rich country is trying to expand into other commodities.

"We have quartz sand, silica, but for a long time, we have been exporting in unprocessed form. We have made efforts to promote the development of downstream industries in the quartz sand industry, and the development of glass and solar module ecosystems is part of this. "

Xinyi Group includes Xinyi Glass and Xinyi Solar. According to Gerry Tung, CEO of Xinyi Group, the improvement of Indonesia's investment environment and strong economic potential have pushed companies to increase investment in Indonesia. Xinyi has invested and built a factory in Gresik's JIIPE Industrial Park.

“Over the past few years, we have seen an excellent investment environment in Indonesia. Many things have changed, we have invested in Gresik, including Batam Island, and the development there has led us to move to other industries.”

Last year, Xinyi Glass signed an agreement with JIIPE developer BMKS to buy a large tract of land in the industrial park. The Chinese glassmaker also signed a hydropower installation agreement with BMKS to support the construction and operation of its factory.

According to the report of the Indonesian government, China is the second largest foreign investor in Indonesia, with a total cumulative investment of US$24.55 billion from 2018 to the first quarter of 2023.

Chinese investments are mainly in Central Sulawesi ($6.88 billion), West Java ($5.21 billion), North Maluku ($3.83 billion), Jakarta ($1.74 billion) and Banten ($1.45 billion).

China's main investment areas also include: base metals ($8.61 billion); transportation, storage and telecommunications ($6.69 billion); electricity, gas and water ($2.75 billion). This is followed by real estate, industrial parks and office buildings ($1.74 billion) and the chemical industry ($1.95 billion).

A government roadmap presented by Indonesia's investment ministry earlier this year showed that Indonesia would prioritize the development of downstream industries for 21 commodities, including coal, bauxite, salt and seaweed, over the next few decades. The investment required to develop the downstream industries of all these commodities is US$545.3 billion by 2040.

Quartz sand soared 400% this year

Following the silicon material in the previous two years, quartz sand and quartz crucible are becoming another "stuck" link in the photovoltaic industry chain.

In the preparation process of crystalline silicon, quartz crucible is an important consumable for pulling single crystal silicon rods, and high-purity quartz sand is the core raw material of quartz crucible and an important consumable for pulling crystal. In recent years, the demand for high-quality quartz in the photovoltaic crystal pulling process has been increasing, which has stimulated the demand for high-purity quartz sand.

Since the beginning of this year, the average price of the most scarce inner layer sand has risen from 75,000 yuan/ton in January this year to over 350,000 yuan/ton, an increase of nearly 400%.

According to the latest data, the current domestic high-purity quartz sand prices remain stable for the time being. The price of the outer layer sand of leading enterprises is 100,000-120,000 yuan/ton, the price of the middle layer sand is 190,000-230,000 yuan/ton, and the price of the inner layer sand is 370,000-420,000 yuan/ton.

About Xinyi Group

Information shows that Xinyi Group, founded in 1987, is the world's largest photovoltaic glass manufacturer, the world's leading integrated glass manufacturer and a leader in the field of new energy. The group owns four listed companies, namely Xinyi Glass, Xinyi Solar, Xinyi Power Storage and Xinyi Energy. At present, it has 11 large-scale production bases, which are located in Shenzhen, Dongguan, Jiangmen, Wuhu, Tianjin, Yingkou, Deyang, Zhangjiagang, Beihai, Hainan, and Malaysia. The total market value exceeds 100 billion Hong Kong dollars, with more than 80 subsidiaries, a total area of ​​more than 10 million square meters, and nearly 20,000 employees.

On December 13, 2021, the People's Government of Qilin District, Qujing City and Xinyi Solar respectively signed a 200,000-ton polysilicon supporting 20,000-ton silica project with Xinyi Solar. The photovoltaic module cover plate production line is equipped with waste heat generators, environmental protection facilities, and photovoltaic power generation and wind power projects. agreement, and signed a cooperation agreement with Xinyi Glass on the float glass production line and photovoltaic power generation and wind power projects in Qilin District. The total investment of the three projects is 23 billion yuan. After the project is completed, it can achieve an annual output of 200,000 tons of polysilicon and 20,000 tons of white carbon black, daily melting of 1,400 tons of float glass, and 2,400 tons of photovoltaic cover plates. The project covers an area of ​​about 2,580 square meters mu.

On February 1, 2023, the first phase of polysilicon project of Xinyi Silicon started construction. The total investment of the first phase of the project started this time is about 6 billion yuan, covering an area of ​​about 795 acres. It is planned to build an annual output of 60,000 tons of electronic-grade polysilicon and a supporting 10,000 tons of white carbon black production line. The construction period is about 6-9 months , is expected to be completed and put into production within this year.

On March 30, 2023, Xinyi Silicon's polysilicon Phase II B project was filed and approved by the local Development and Reform Commission. The total investment of the project is 5.6 billion yuan. It is located in Yuezhou Town, Qilin District, Qujing City. The project covers an area of ​​about 1,000 mu, with a total construction area of ​​about 535,000 square meters. A granular silicon production line with a designed annual production capacity of 77,000 tons. Construction is expected to start from December 2023 to December 2025.