JA Solar announces facility expansion in Malaysia

JA Solar announces facility expansion in Malaysia

Tier one solar player JA Solar is cranking up its production capacity
outside of China, with news of a further expansion at its Bayan Lepas
production facility. The expansion comes in the face of falling module
prices around the work, as an oversupply seems to be taking hold of the
industry.

It is just one year since the facility opened in Bayan Lepas on the island
of Penang, Malaysia, and already JA Solar has launched its second phase
expansion. The company will invest RM 400 million (USD 48 million) in the
expansion, which will see the creation of 200 jobs at the plant.

Most notably, the investment will be used to significantly increase the
manufacturing output capacity from 400 MW per annum to 1,000 MW per annum.
Additionally, it will enable the facility to start producing JA Solar's new
line of Percium solar cells.

"This further investment by them here reflects Penang's position as a key
center for JA Solar and by making its latest products here, JA Solar can
ensure that Penang and Malaysia remains at the forefront of the solar
industry," said JA Solar Holdings Co Ltd President Jian Xie during a speech,
while also the move was part of the company's global strategy.

One related development, which may have partially inspired the new
investment in the Malaysia facility, is JA Solar's decision to withdraw from
the European Union (EU) pricing undertaking. The company voluntarily
withdrew from the minimum import price undertaking, which it had agreed with
the EU, as part of the EU's anti-dumping measures against Chinese PV
manufacturers. The withdrawal means that large duties will be charged on JA
Solar's exports to Europe.

However, the measures are not applied to the company's manufacturing
facilities located outside of its domestic location of China. Therefore, its
Malaysian facility will be able to supply the European market without the
duties being applied.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com