GEORGE TOWN: Tek Seng Holdings Bhd, a solar cell maker, is expanding its production capacity to triple its existing size this year.

Group managing director Loh Kok Beng told StarBiz that the group would spend RM237mil on its existing premise this year to add five more production lines and a facility in Penang Science Park to increase the production capacity to 740MW by the third quarter.

At the moment, the group’s production capacity is around 270MW, utilising four production lines.

“The new investment will raise the contribution of the solar panel business to 60% to 70% of the group’s revenue for 2016,” Loh said in an interview.

In the first and second quarters of 2016, the production capacity per month will be 5.6 million pieces of solar cells.

“The order book for the two quarters are already filled up,” Loh said.

When the lines are fully installed in the third quarter 2016, the group will be able to produce 740MW of solar power, which is equivalent to about 156 million pieces of cell, valued at around US$250mil in today’s market.

The price of solar cell is about US$1.61 per piece, compared to US$1.40-US$1.50 per piece a year ago.

The price of silicon wafer, the key ingredient of solar cell, is 90 US cents compared to 80 US cents a year ago.

Tek Seng’s solar cells are sold mainly to Taiwan, China, the US, Canada and Eastern Europe.

On its polyvinyl chloride (PVC) flooring and packaging product business, Loh said the bottom line of the PVC business should stay flat in 2016, despite the drop in PVC resin prices to US$700-US$800 per tonne from US$1,000 per tonne last year, lowering production cost by 25%.

“This is because the buying power from emerging markets has been affected as their currencies have depreciated against the greenback, raising their import costs.

“Another reason is because about 60% of the production cost are used for importing raw materials in US currency,” he said.

According to a IHS Technology report released in November 2015, the global market for solar panels is expected to soar to a record high in the first half of 2016 because of strong demand as well as favourable policies in the US and China.

The report said that in the first half of 2016, solar panel manufacturers would produce almost 35 gigawatts (GW) of solar panels, compared to 27.9 GW produced in the same period in 2015.

One gigawatt is nearly the equivalent energy produced by a large gas or nuclear plant.

“However, in the second half of 2016 and into 2017, growth is expected to slow after the US lowers its solar tax credits and a push by China to install more panels ends,” the report said.

http://www.thestar.com.my/business/business-news/2016/02/15/tek-seng-set-to-triple-production-capacity/

KUALA LUMPUR: The government is looking to approve several more solar photovoltaic (PV) companies with a total estimated investment of RM1.7 billion this year.

"We will announce it when the time comes," Malaysian Investment Development Authority (Mida) Deputy Chief Executive Officer Datuk Phang Ah Tong said in a media conference at the PV CellTech Conference 2016 here on Wednesday.

Solar PV is a method for converting energy from sunlight directly into electricity using large arrays of solar panels.

Earlier, Phang said one solar PV company, with a total investment of RM1 billion, has been approved so far this year.

"Malaysia's stategic position in the industry is now attracting global solar PV module manufacturers," he said, adding the country's PV cluster ecosystem comprises about 250 companies from upstream manufacturing to downstream services, including module supply chain, supporting industries and system integrators.

Phang pointed out that the PV industry is growing as the country has been diversifying its electricity generation mix and shifting to solar PV.

"Malaysia also expects to have installed about 1,250 MW of solar PV by 2020 from the current 230 MW following two mechanisms approved by the government namely net metering and utility scale solar.

"With support from the government, we are optimistic the target is achievable with these two mechanisms in place," he said.

Phang also said that solar energy now has become a popular approach to renewable energy usage as it is the easiest, compared with biomass, biogas and hydropower.

"Malaysia is now the world's third largest manufacturer of PV cells, with the industry contributing significantly to economic growth and job creation," he said, citing International Energy Agency data.

Malaysia also has the world's largest thin manufacturing site and is one of the top exporters of solar panels to the US, he noted.

"Five out of 10 of the world 's largest solar companies are operating in Malaysia with the PV industry recording revenue of RM20.8 billion last year," Phang said.- Bernama

http://www.thestar.com.my/business/business-news/2016/03/16/govt-looking-to-approve-solar-pv/