Neo Solar to build up to 600-MW Vietnam PV factory
Solar cells. Author: Jeff Kubina. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Taiwanese firm Neo Solar Power Corp (TPE:3576), or NSP, expects to kick off production by the end of the year at a Vietnamese photovoltaic (PV) cell and module factory with an initial annual capacity of 500 MW-600 MW.
The solar company has already started installing the equipment for the new production lines. The move is part of a planned relocation of part of the company’s manufacturing base from Taiwan to Vietnam with an ultimate goal to enhance Neo Solar’s cost competitiveness, according to a statement on Sunday.
In line with the strategy, Neo Solar will shut down its small-scale Hsinchu assembly line in northern Taiwan upon the expiration of its rental agreement this month. The high manufacturing costs and the limited solar module capacity at the 60-MW plant are unable to yield economies of scale, the firm explained.
As a result of the capacity relocation and other factors, the company’s operating expense ratio for the first quarter of 2016 grew to 10.07% from 6.56% in the preceding quarter.