JA Solar Starts Work On Vietnam Factory

Chinese Tier 1 Module Maker JA Solar Expands Its Production Abroad Beyond Malaysia Now to Vietnam
03:09 PM (Beijing Time) - 30. November 2016

Key Takeaways

  • JA Solar has reportedly broken ground on a solar cell factory in Vietnam
  • The Chinese vertically integrated PV module manufacturer plans to invest $320 million over the next three years for the Vietnam factory
  • The announcement comes only 1 month after JA inaugurated the expansion of its Malaysia factory to 1 GW

JA Solar Holdings Co.,Ltd. has started work at its planned manufacturing site in Vietnam. Though there is no official release from JA, Vietnam Breaking News.com reported that the Chinese tier I module maker held an inauguration ceremony on November 27, 2016 at the Quang Chau Industrial Zone in Viet Yen district. The total investment on the facility is likely to be more than $1 billion.

The Chinese company plans to start production of solar cells through its local subsidiary JA Solar Vietnam Company. In the first three years, it will spend $320 million on the facility. The news report didn’t mention the capacity but said that JA expects to generate a turnover of $500 million a year once the project is complete.

Production in Vietnam and Malaysia
Vietnam will be JA’s second country to operates a production facility outside China. JA had only launched its first production facility abroad in October 2015 in Malaysia. The cell and module facility on the Malaysian island of Penang had initially 400 MW and was build ‘to provide competitive product solutions for certain overseas markets’ as the US and Europe are protected through import duties from China made modules. JA Solar invested approximately 300 million MYR in the facility. Only 1 year later, in October 2016, JA head invested further 200 MYR and celebrated the expansion to 1 GW in Malaysia.

In November, JA left the Undertaking Agreement between the European Union and China, which allows JA to ship modules to EU markets from its non-Chinese facilities without having to pay the Minimum Import Price.

JA Solar owns six production facilities in China. It operates a silicon wafer capacity of 2.0 GW, cell capacity of 5.0 GW and module capacity of 5.5 GW.

In mid November, JA had reported in its Q3 results that it shipped 1,240.9 MW of cells and modules, exceeding the low end of the previously announced guidance range of 1,200 to 1,300 MW. Nearly all products were sold to external customers,
with external shipments up +10.1% year-on-year and up +0.9% sequentially.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani