GEORGE TOWN (Oct 21): Chinese Nasdaq-listed JA Solar Holdings Co Ltd, which invested RM300 million in its Malaysian facility here, is expected to begin the first shipment of its 400MW multi-crystalline solar cells for its export markets, primarily in the US and Europe, by next month.

The production of the 400MW solar cells constitute about 10% of the group’s total capacity of 4GW, said its strategic planning and business developmet head, Dr Christoph Flink.

He also said the overall contribution to the group’s revenue from Penang would be 'substantial' and 'important', hence the high value of its investment here.

“One reason why we are in Malaysia is because it is part of our long-term strategy of moving some of our manufacturing sites to outside China. This is to reduce geograhical risk and adjust to politics and policies around the world.

“[In] Asia, the first to lead our manufacturing site is Malaysia, but we have also signed a memorandum of understanding in India, which might be on a joint-venture basis,” he said.

Flink told reporters at a media launch that JA Solar was looking for other regions, where it could source for local content and adjust them to the group’s strategic commitments.

“Each of these investments is too big to accommodate short-term solutions,” he said, adding that any kind of policies, including anti-dumping, tend to be temporary in nature.

He was asked to comment on the anti-dumping policies introduced by US and Europe, against Chinese solar products.
 
“It changes every year, but our investment in Malaysia is definitely for the long run. We will deliver to US and other regions,” he said, adding while the raw materials such as silicon wafers were being imported from China, the finished product from Penang comprising solar cells and modules would not be subject to the anti-dumping duties.

He expects the solar panel industry to grow exponentially despite the slowdown in the global economy, due to government policies that have been put in place to aid the renewable energy revolution.

In its second quarter ended June 30, 2015, net income of JA Solar, which is the world’s second largest solar cell manufacturer, rose 240% to RMB136 million (RM92.2 million); while revenue was 11.8% higher at RMB2.7 billion (RM1.83 billion), as compared to the corresponding quarter last year. It has a market capitalisation of US$438.6 million (RM1.8 billion)

In recent months, Malaysia has turned into a major destination for Chinese solar companies seeking to circumvent the high taxes imposed by US and Europe since 2012, with increasing quantum.

In May, China-based Jinko Solar Holdings Co opened its 500MW solar cells and 450MW solar panels facility in Bayan Lepas, Penang.

Meanwhile, JA Solar Malaysia Sdn Bhd's deputy Ken Y Ong said the RM300 million investment was mostly spent on machinery and upgrading of rented facility in Bayan Lepas.

The group would be employing 700 employees, including 100 managers, technical engineers and supervisors, he added.