Wednesday April 27, 2011
RM6bil potential FDI
By DAVID TAN
davidtan@thestar.com.my
TWO overseas solar energy manufacturing corporations from Germany and Japan are said to be eyeing to invest around RM6bil in Penang to set up facilities in the state.
The Germany-based firm is now in the advance stages of negotiation with the state government while the Japanese company’s discussions with the state authorities are still at the preliminary level.
Sources familiar with the solar power industry said the German company had visited Penang several times to conduct feasibility studies to invest about RM3bil for a manufacturing facility in Seberang Prai.
It is learnt that the Germans, which require a large tract of land for their investment in Penang, are also considering China as an alternative site.
“It all comes down to the incentives offered to the German company.”
“But if the deal with the Germans is inked, state-of-the-art solar production equipment and technology will be transferred to Penang,” said one source.
It is learnt that the German company, which is headquartered and has production facilities in central Germany, produces solar cells and modules and employs some 2,000 workers.
The company also has distribution centres in Palo Alto in the United States, Lisbon (Portugal), Saint-Quen (France), Milano (Italy), Real Madrid (Spain), Melbourne (Australia) and Shanghai (China).
It is learnt that the Japan solar company has also visited Penang and is looking at investing about RM3bil on a manufacturing facility.
By 2020, Malaysia aims to become the world’s number two manufacturer for solar cells and modules, with a 17% global market share and cumulative capacity of 23 gigawatt (GW).
As at December 2010, the Federal Government has approved 17 companies to manufacture solar cell, solar wafer, and solar module with total investments amounting to RM13.76bil.
Of the amount, 95.1% come from foreign direct investments (FDI) while the remaining 4.9% are from domestic firms.
There are five solar power manufacturing companies currently in production in Malaysia with a total production capacity of 1.5GW.