JA Solar recently announced plans to invest in a project in Oman to produce 6GW of high-efficiency solar cells and 3GW of high-power solar modules annually, with a total investment of CNY 3.957 billion, accounting for 11.27% of its latest audited net assets.
In terms of investment objectives and impacts, JA Solar mentioned that over 50% of its business is overseas. With the continuous growth in overseas market demand and the impact of international trade protection policies, the company faces an increasingly urgent need to establish overseas production capacity. The investment in this overseas production capacity project aligns with the company’s globalization strategy and will enhance its overseas production capacity for high-efficiency products.
On July 17th of this year, two other leading photovoltaic companies, JinkoSolar and TCL Zhonghuan, announced plans to build production capacity in Saudi Arabia, with JinkoSolar planning a 10GW high-efficiency Cell and module project and TCL Zhonghuan planning a 20GW photovoltaic wafer project annually.
To reduce investment costs and control overseas investment risks, JinkoSolar and TCL Zhonghuan have introduced RELC, a subsidiary of the Public Investment Fund (PIF) of Saudi Arabia, and Vision Industries Company, a local enterprise, as investors in the project, establishing a joint venture in Saudi Arabia with shareholdings of 40%, 40%, and 20% respectively.
JA Solar also stated in its announcement that it plans to establish a new project company as the investment, operation, and management entity for this project, and intends to introduce external shareholders to participate in the project through a joint venture. The registered capital of the project company will be determined based on project needs and will not exceed the total project investment.
Oman is located in the eastern part of the Arabian Peninsula, and another photovoltaic Cell enterprise, Junda, is also investing there, planning to build annual production capacity of 5GW of high-efficiency N-type batteries. According to the company’s research memorandum released in November, on October 31, 2024, the company officially signed a Land Lease Agreement with Oman and continues to communicate with the local government on details such as water and electricity. The company expects its Oman project to commence construction before the end of 2024 and to be completed and commence production in 2025. Upon completion, the Oman project will establish scarce overseas Cell production capacity to meet the high-value market demands of the Middle East, Europe, and the United States.
It is worth mentioning that JA Solar’s planned production capacity does not stop there. On November 21st, Egypt, Global South Utilities from the UAE, and JA Solar signed a memorandum of understanding (MOU) to establish two solar power plants.
It is reported that the agreement will involve the construction of two manufacturing plants, each with a capacity of 2GW, one dedicated to manufacturing solar cells and the other to producing solar modules. As part of the MOU, Global South Utilities will support JA Solar in conducting feasibility studies and obtaining government subsidies. JA Solar will oversee the research phase, with an estimated investment of 138 million for the solar cell factory and 75 million for the solar module factory, primarily serving the local market.
Regarding this news, JA Solar stated that the company has been actively exploring a global production capacity layout. The signing of the MOU for the Egypt project is a preliminary intention reached with partners and signatories. Subsequent discussions will focus on the specific construction scale of the project, shareholding ratios of all parties, and other details, leveraging the advantages of all parties to facilitate the project’s implementation.
The demand for renewable energy in the Middle East is enormous, and it is becoming a trend for Chinese photovoltaic companies to expand their markets by establishing factories and investing locally.
