China Sunergy to Invest RMB1.8 billion in 1GW Solar Cells Production Expansion Project

China Sunergy Co., Ltd. CSUN announces that its fully owned subsidiaries China Sunergy (HK) Co., Ltd. and China Sunergy Co., Ltd. are to increase China Sunergy's annual silicon cell production capacity by co-investing in a 1GW solar cells expansion project in Yangzhou City situated in Jiangsu Province, China. The first batch of 500MW solar cells production line is expected to be commercialized in the first half of 2012. The investment cost for the fixed assets of the project is estimated to total RMB1.8 billion. This project will be partially funded by a RMB500 million three year general corporate loan from China Electric Equipment Group Corporation Ltd.. The interest rate for the loan is comparable to a bank loan over the same period. The remaining investment costs will be primarily funded by credit facilities from other local banks.