SOLAR-CELL parts maker GCL-Poly Energy Holdings Ltd and China Investment Corp have agreed to terminate a short-lived joint venture agreement for solar farm projects.

They agreed to form the US$500 million joint venture to invest in solar power generation stations late last year. GCL-Poly Chairman Zhu Gongshan had expected a return of at least 12 percent on the investment.

CIC's consideration is "based on a strategic point that they are a long-term financial investor and do not want to be involved in specific operations and management of the company," GCL-Poly said yesterday.

The firm said its ties with CIC are "stable and close." CIC, the nation's sovereign wealth fund, owned 20 percent of GCL-Poly.

Hong Kong-listed GCL-Poly is China's largest maker of polysilicon and wafers used to make photovoltaic modules.

GCL-Poly last month formed a joint venture with California's SolarReserve to build solar farms in the United States. US bank Wells Fargo last month agreed to fund over US$100 million in US solar projects built by GCL-Poly.