The Baoding Yingli Group Co., which is owned by the CEO of Yingli Green Energy Holding Co. (NYSE: YGE), Liansheng Miao, on Friday said it might manufacture its own polysilicon.

According to the announcement, the project would produce up to 3,000 metric tons of silicon annually, using Siemens technology, in Baoding, China. The group said it will finance the project without help from Yingli Green Energy.

While a number of companies have anticipated increased silicon production from China, a report that the China-based International Energy released Friday found that silicon use has far exceeded production.

The report, written in Chinese, forecast that China will require about 20,000 tons of silicon in the next few years, but produced only 287 tons in 2006. At the same time, it notes that the capacity of the projects being planned in China surpasses the current world demand.