Sun Bear Solar Sdn Bhd will invest RM5.2 billion in Malaysia to produce solar glass for the photovoltaic industry, said its chief executive officer/chairman, Lee Holt Judd.
Judd said an initial investment of RM2.2 billion would be utilised under phase one to produce float and pattern line in the middle of this year, as well as for the construction of the plant and equipment.
"The plant will be built on 120-hectare site at the Kota Kinabalu Industrial Park. It will create 1,200 jobs in Malaysia," she told a media briefing here today.
Judd said this after jointly announcing the investment with Malaysian Industrial Development Authority (Mida) director-general, Datuk Jalilah Baba.
She said the remaining RM3 billion would be used under the second phase to enlarge the glass lines.
"We expect production to start in the first quarter of 2012 and the second phase of construction would probably start in the next six to nine months," she said.
Sun Bear Solar, a wholly-owned unit of Hong Kong's Sun Bear Solar Ltd, focuses on developing new products designed to enhance the efficiency of solar modules.
Judd said Malaysia was picked because of its commitment to solar panel manufacturing growth and the availability of high quality raw materials.
It is understood that the sand on Balambangan Island was ideal for glass-making for solar panels.
Meanwhile, Jalilah said Sun Bear Solar's investment was the biggest for Malaysia this year and the first-of-its-kind in the country to produce solar glass for solar panel and module applications.
She said it would benefit the small and medium industries and local companies in terms of supply of parts and components, raw materials, services and logistics.
Jalilah said the investment would form an important component to complete the formation of the solar industry cluster in Malaysia and lift the country towards achieving a high-income economic status.
"Sun Bear Solar's investment will enhance Malaysia's efforts in attracting further investments from manufacturers of solar panel and module to be located in Malaysia," she said.
She said currently, five to six photovoltaic makers were undertaking due diligence process to set up their facilities here.
The solar industry has been targeted as Malaysia's priority project to generate clean energy and new growth areas in high-value added manufacturing.
Under the 10th Malaysia Plan, the government expects to generate 215 megawatt (MW) peak from solar, thus increasing its solar contribution from 0.0013 per cent to 1.5 per cent.
"As a high-technology-driven industry, solar manufacturing has the potential to contribute up to four per cent of the country's gross domestic product in 2010," Jalilah said.
The solar industry expanded by a record high of 75 per cent last year, reaching a worldwide production volume of 7,500 MW peak and booming into a RM115 billion business last year.
The global market volume for solar-based products were forecast to increase to RM180 billion this year, and the market is expected to exceed RM500 billion in 2020.
Jalilah said the new solar glass plant would also create economic spin-offs via the production of high-value innovative products, introduction of new and advanced solar technologies and also potential downstream industries such as lighting, green building, home applications and solar heating.
Following the deal, Jalilah said, the foreign direct investment for 2010 would be "much better" than the RM32.6 billion achieved last year.
http://www.btimes.com.my/articles/20100310201921/Article/
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