Chinese-owned German CIGS thin-film module manufacturer has broken ground on a new factory in Bengbu, Anhui province, China.

The 300MW initial phase of the new fab is expected to begin production in early 2017 and heralds what is expected to become a much larger operation of some 1.5GW.

CTIEC, the engineering and project development branch of CNBM, the building materials group that bought Avancis last year, the Bengbu Investment Group and the Bengbu Gaoxin Investment Group jointly plan to invest €1.43 billion (US$1.62 billion) in the facility.

"In addition to the basic cost benefits of a fully integrated thin-film production, this expansion also enables us to take advantage of volume effects for further cost reductions,” said Franz Karg, CEO of Avancis. “With this giant solar project, we also use the unique opportunity to produce and market our thin film technology locally in the centre of the world's largest photovoltaic market."

Avancis’ existing production line in Germany will also be expanded to serve the European market, the company said without giving further details.