HONG KONG, Dec 17 — Ningbo Deye Technology, a Chinese producer of power inverters, has announced plans to invest up to US$150 million (RM668 million) in a new manufacturing base for solar equipment in Malaysia.
In an exchange filing in Shanghai on Monday, the company revealed it will establish a subsidiary in Malaysia to produce solar photovoltaic (PV) equipment and energy storage products, according to a report published in South China Morning Post today.
A power inverter is a critical component of a solar panel system.
“With constant changes in the international situation and trade environment, the necessity of deploying overseas capacity is increasingly urgent,” the company stated.
“Setting up a subsidiary in Malaysia will help the company expand into overseas markets and respond to the potential adverse effects of the macro environment and international trade more flexibly.”
The investment, however, is subject to approvals from both the Chinese and Malaysian governments.
Chinese solar and electric vehicle (EV) companies have been looking to South-east Asia as a strategic hub to expand internationally and navigate trade restrictions imposed by the US and European Union.
These measures aim to protect local industries and curb the influx of lower-cost imports.
However, recent tariffs from Washington have added challenges.
The US imposed anti-dumping duties on solar products imported from four South-east Asian countries — Cambodia, Malaysia, Thailand, and Vietnam.
These anti-dumping duties cover solar cells and modules.
For example, Shanghai-based Jinko Solar faced duties of 21.31 per cent for products made in Malaysia and 56.51 per cent for goods from Vietnam.
Jiangsu-based Trina Solar received tariffs of 77.85 per cent for its Thailand-made products and 54.46 per cent for those manufactured in Vietnam.
These tariffs have created further uncertainty for Chinese solar companies, which control over 80 per cent of the global solar panel supply chain but are grappling with a domestic price war exacerbated by weak demand.
Gu Yu, deputy director of the Trade Remedy and Investigation Bureau under China’s Ministry of Commerce, recently addressed these challenges at an annual solar industry conference in Sichuan province.
“Geopolitical conflicts, protectionism, and the efforts of some countries to decouple from China are impacting the operation of global supply chains and trade systems,” Gu said.
He urged solar PV manufacturers to collaborate with local firms in Belt and Road Initiative countries, explore solar power project investments, and increase research and development to enhance global competitiveness.
