ReneSola closes $70 million share offering in preparation for polysilicon optimization

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ReneSola yesterday closed a $70 million share offering on the NYSE after successfully raising the proceeds the company needs in order to continue optimizing its polysilicon production and maintain forward momentum in its global growth plans.

The Chinese manufacturer restarted its polysilicon production efforts earlier in the summer after undertaking substantial upgrades of its furnace and hydrochlorination technology in an effort to reduce production costs.

With production costs previously in excess of $30/kg, ReneSola hopes that the recent upgrades will bring that figure to $18/kg. At a second quarter conference, the management board reported that a lower-than-expected performance was the result of production costs above $20/kg for its daily 20MT production.

However, the proceeds raised at this latest share offering will be ploughed into further optimization measures at ReneSola’s polysilicon production facilities.

"With the global solar market continuing to expand, the proceeds from this offering will provie ReneSola with important working capital as we continue to grow our worldwide business," said ReneSola’s CEO, Xianshou Li.

"The proceeds will also be used for the optimization of ReneSola’s polysilicon plant, which will help us strengthen our supply source and control our raw material cost, thus putting us in a more advantageous position overall as we follow through on our longer-term business development strategy."

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