Canadian Solar’s New Energy Park to Be Built with ~1.5 Billion CAD Investment; Aiko Solar Commences Phase I Project in Jinan
On the evening of February 26th, Canadian Solar Group (Canadian Solar, 688472.SH) announced plans to invest in Canadian Solar New Energy Co., Ltd. in Huai’an to establish an annual production capacity of 14 GW of wafers, 14 GW of cells, and 14 GW of modules.
The project will be constructed in three phases, with civil equipment expected to arrive in March. The total planned investment is approximately 1.5 billion CAD.
Canadian Solar stated that this decision is a strategic move to balance capacity expansion across various regions and optimize its overall operational layout. Because the project site is close to its existing bases in Suqian, Yancheng, and Yangzhou, it can leverage regional cluster effects to share technical talent and resources, thereby enhancing overall operational efficiency.
The company also revealed that the project’s products will utilize advanced N-type technology and will receive strong support from local government investment incentive policies.
In addition to the expansion news, Canadian Solar announced plans to repurchase company shares worth between 500 million CAD and 1 billion CAD.
According to global module shipment rankings from InfoLink Consulting, Canadian Solar held fifth position, tied with Tongwei Solar (600438.SH). In Canadian Solar’s latest investor relations record, the company expects its annual production capacity for ingots, wafers, cells, and modules to reach 50.4 GW, 55 GW, 60 GW, and 61 GW, respectively, with annual module shipments projected between 42 GW and 47 GW.
Currently, the photovoltaic sector is experiencing a market trough. With overcapacity present across various segments of the supply chain, profit margins have narrowed, making large-scale capital investments relatively rare.
Canadian Solar noted in its announcement that as global photovoltaic capacity expands, solar module prices are gradually decreasing, which in turn impacts cell and wafer pricing and project profitability. To mitigate economic risks, companies must maintain technological leadership, develop next-generation products, and expand market share.
Aiko Solar Commences Billion-Dollar Project in Jinan
On the same day, another major cell and module manufacturer, Aiko Solar (600732.SH), announced the commencement of a major investment project.
Aiko Solar plans to construct Phase I of an industrial complex in Jinan featuring an annual capacity of 10 GW of high-efficiency monocrystalline silicon solar cells and modules. The estimated total investment is approximately 1.57 billion CAD, comprising 1.12 billion CAD in fixed assets and 450 million CAD in working capital.
This investment plan was first disclosed in April of last year, when Aiko Solar announced a 3.6 billion CAD framework to build a 30 GW monocrystalline cell facility alongside a supporting 30 GW module facility in Jinan over five years. Following the commencement of Phase I, start dates for Phases II and III remain unscheduled.
Aiko Solar plans for the Phase I facility to produce cells and modules based on All-Back-Contact (ABC) technology, marketing them as standalone components or integrated solar energy solutions.
The company noted that while overall demand in the solar industry remains strong, aggressive capital expenditure and cross-border competition have intensified market rivalries. Photovoltaic product prices have fluctuated significantly, and ongoing market volatility or rapid technological shifts could cause project returns to fall below initial forecasts.
ABC technology utilizes back-contact cell structures. Aiko Solar stated that while these products offer efficiency advantages, brand awareness and long-term product reliability are still in early development stages. If future production fails to meet market expectations regarding quality or service, sales performance could be impacted.
In addition to market uncertainties, Aiko Solar faces liquidity considerations. As of late Q3, Aiko Solar held 4.88 billion CAD in cash and cash equivalents, leaving a funding gap relative to the total project scope. The company plans to secure capital through operational cash flow, government subsidies, and institutional debt financing.
Amid declining prices across the solar supply chain, Aiko Solar reported a Q4 net loss of approximately 1.12–1.16 billion CAD, with an asset-liability ratio of 69.8%.
At the close of trading on February 27th, Canadian Solar’s stock price stood at 14.18 CAD (+1.79%), giving it a market capitalization of 5.23 billion CAD. Aiko Solar’s stock price closed at 14.96 CAD (-0.07%), with a market capitalization of 2.74 billion CAD.