Drinda has canceled its proposed 5 GW solar cell factory in Oman’s Sohar Free Zone
The company cited Middle East geopolitical tensions, trade policy changes, and uncertainty over Chinese PV technology exports as factors
It plans to now redirect unused IPO proceeds towards PV cell R&D, production upgrades, raw material procurement, and working capital
Hainan Drinda New Energy Technology has terminated its planned 5 GW solar cell manufacturing plant in Oman. The Chinese solar cell manufacturer, which produces solar cells through Jietai Solar (JTPV), initially announced the factory plans in 2024.
The company’s Oman investment targeted 10 GW of high-efficiency n-type solar cell production, to be built in two 5 GW phases. In November 2024, it entered a land lease agreement with the Sohar Free Zone LLC to locate the factory (see Drinda Secures Land For 5 GW Solar Cell Production In Oman).
Since then, the world has changed considerably, with geopolitical uncertainties in the Middle East following military conflict in the region since the end of February 2026, as well as supply chain challenges.
In a stock exchange announcement, Drinda cited changes in international trade and tariff policies, and slower-than-expected development of Oman’s local solar supply chain for major and auxiliary PV materials, as reasons for the decision.
In addition, the company cited the Chinese government’s proposal to impose export controls on certain PV-related technologies and key production equipment as increasing uncertainty around equipment supply, construction timelines, and investment costs.
Moreover, none of the joint implementation schemes with potential investors and partners for the Oman project have materialized, according to Drinda. As a result, no substantive construction work has started on site, and investment has been minimal to date. Drinda’s board has approved the resolution.
Following the termination, Drinda plans to reallocate HKD 962.77 million (approximately $123.5 million) in unused proceeds from its Hong Kong listing towards other business requirements. Of the total amount, HKD 577.66 million will be allocated to PV cell product research and development, technology upgrades, and production line improvements.
Another HKD 288.83 million will be used for the strategic procurement of PV cell raw materials, while HKD 96.28 million will be allocated to general working capital.
The company expects to utilize the reallocated funds by December 31, 2027. However, the proposed change in the use of proceeds remains subject to shareholder approval.
In its Q3 2026 financial results, Drinda reported revenue of RMB 2.04 billion, up 1.17% year-on-year (YoY). However, it recorded a net loss of RMB 175.26 million during the quarter.