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Trina Solar will partner with Welspun Renewables to build a 2GW module factory in India, according to reports by Bloomberg.

The report quoted Trina’s Zhiguo Zhu saying that the plant’s output would be used to serve the US and European markets. Both have placed additional punitive trade duties on modules made in China.

The company had already announced 500MW of cell and 500MW of module production with Welspun. Details of a potential second phase alluded to by Zhu suggest that deal could now be expanded. Zhu also said that demand from India could reach 600MW this year.

The planned phased expansions, said to cost around US$500 million would not meet US ITC reductions due by the end of 2016, suggesting the majority of capacity would meet India and other regional market demand for both partners. 

Trina Solar has already announced a major PV production plant in Thailand to meet expected US demand

Trina, which has overtaken Yingli as the largest producer of solar modules, is currently at full utilitsation and could struggle to match an anticipated 4GW of demand this year. 

At the RE-Invest conference in Gujarat in February, Trina CEO Jifan Gao said the key to India meeting its 100GW goal, was attracting companies to invest and build in India.

Prime Minister Modi’s Make in India campaign has formed a high-profile part of his economic strategy.

Welspun Renewables was not available for comment at the time of press.

Additional reporting by Mark Osborne