The first batch of solar photovoltaic (PV) modules produced in Baotou, Inner Mongolia autonomous region, will be exported to the Middle East, Baotou Daily reports.

The production line, located in the Baotou Equipment and Manufacturing Industry District, was financed by Canadian Solar Inc, a multinational firm that manufactures solar PV modules and PV solar power systems.

The production line started operations on Feb 18, using new technologies and equipment to increase PV conversion efficiency by 5 percent.

The production line, which cost 40 million yuan ($5.8 million) to set up, is expected to produce 200 megawatt solar modules a year. The annual output value will reach 600 million yuan.

Canadian Solar also signed an agreement with Baotou city on Oct 9 to further boost the development of the photovoltaic industry there, part of which will include investing in new production lines in the district that will make three-gigawatt silicon chips and 600-megawatt solar power components. The projects will cover 367 mu (24.5 hectares) with overall floorspace of 100,000 square meters.

The largest industrial and manufacturing city in North China's Inner Mongolia autonomous region, Baotou boasts a population of some 2.8 million. In 2009, Canadian Solar was granted rights to develop a 500-mW solar power plant in the city.