Malaysia will not be transshipment hub for Chinese PV products - report

Malaysia has taken steps to prevent Chinese solar panel makers from simply assembling their products there using imported cells, and has already rejected an application by Trina Solar (NYSE:TSL) for a local plant.

The Malaysian Reserve quoted Datuk Dr Ali Askar Sher Mohamad, COO of the Sustainable Energy Development Authority (SEDA), as saying that the body is “proactively monitoring to ensure companies do not use Malaysia as a transshipment hub”.

In May the European Commission (EC) said it is starting a probe into solar imports from Taiwan and Malaysia to determine whether Chinese products bypass EU anti-dumping measures. Malaysia is already the third-largest photovoltaics (PV) maker globally and the imposition of punitive tariffs would be devastating for the local industry, Ali told the business daily.

The Malaysian government is now accepting manufacturing plant applications by foreign solar PV makers only if these companies manufacture the cells locally.

One Chinese solar company has been allowed to build a factory locally. JinkoSolar Holding Co Ltd (NYSE:JKS) in May started production at its facility for solar cells and modules in Penang. The plant is expected to reach full capacity of 500 MW of cells and 450 MW of modules per year within two months.

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