Xinyi Solar will invest around US$100 million in a new ultra-clear PV glass factory in Malaysia.
The company has confirmed the purchase of land in Malacca, Malaysia for the new facility from a government development agency.
In a statement to the Hong Kong stock exchange it said the “infrastructure” at the site would be in place by the end of November 2015. It also said that the construction of the facilities and the related investments would occur in a number of phases.
“The directors believe that the new ultra-clear photovoltaic glass production capacity of the group in Malaysia is a major strategic step for the group to diversify its production base and strengthen its overseas sales,” the company said in a statement.
With the rest of the company’s production in China, the Malaysian base will ensures some of Xinyi’s glass does not get dragged into the scope of the US anti-dumping duties.
It will also receive trade benefits as a result of Malaysia’s membership of the Association of Southeast Asian Nations Free Trade Area. The agreement includes preferential trade treatment of 8,000 products, of which solar glass is one. As a result, the company expects to export a significant volume of the glass to fellow signatories including Thailand, Philippines and Singapore.