Chinese polysilicon wafer manufacturers are looking to create a 50-billion-yuan fund to acquire and shut down nearly one-third of the country's production capacity to recoup losses, Reuters reported, citing GCL Technology (HKG:3800).

Plans were in place to close down and acquire the production of at least 1 million metric tons of lower-quality polysilicon capacity, the report said, citing GCL Investor Relations Director Jun Zhu.

"It is sort of like the OPEC of the polysilicon industry, wherein total supply for a specified timeframe has to be agreed by the central committee and production quotas to be allocated to producers," Reuters quoted Jun as saying.

The closure will retain 2 million tons of capacity. As of the end of 2024, the country's polysilicon capacity was at 3.25 million tons, the report said, citing industry thinktank Bernreuter.

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