KUALA LUMPUR - Several Chinese-owned solar panel makers have shut down or scaled back their operations in Malaysia, industry sources say, as US tariff hikes in 2024 squeezed margins and further hikes are expected. These include the world’s largest solar panel manufacturers Jinko Solar Co, Risen Energy Co and JA Solar Technology Co, which collectively account for nearly 40 per cent of Malaysia’s total solar production capacity. Risen Energy Co is believed to have scaled down its production in the last six months, according to industry sources. The company first entered the Malaysian market in 2021, and had planned to invest over RM42 billion (S$12.7 billion) over 15 years in its production facility in Kulim, Kedah state. Meanwhile, Chinese solar panel giant Longi Green Energy Technology Co, which accounts for more than 37 per cent of capacity in Malaysia, has halted its expansion plans after building three manufacturing facilities in central Selangor state and Sarawak in East Malaysia. It first ventured into Malaysia in 2016, and its total investments amounted to RM5.4 billion in 2023. China’s solar panel makers dominate the local sector, making up nearly 80 per cent, or 18.6 gigawatts (GW), of Malaysia’s 23.6GW total solar production capacity in 2024, according to consultancy firm Wood Mackenzie. The remaining production capacity is taken up by the US’ largest solar manufacturer First Solar and South Korea’s biggest solar producer Hanwha Qcells. Most of these solar panels are manufactured for export to the US, with Malaysia’s installed solar capacity at only 4.2GW. From January to September 2024, Malaysia, which is a major hub for solar panel manufacturing in South-east Asia, exported nearly US$1.8 billion (S$2.4 billion) worth of solar panels. Mr Chin Soo Mau, adviser to the Malaysian Photovoltaic Industry Association, told ST that more Chinese solar firms are expected to shut down operations in Malaysia as US tariffs continue to erode their profit margins. “Many of these firms initially invested in Malaysia to target the US market. With higher scrutiny over the ownership of companies exporting solar panels to the US, and potential higher tariffs by Mr Trump, their products will no longer be competitive in the US market,” he added, referring to US President-elect Donald Trump. Over the past decade, Malaysia, along with other South-east Asian countries like Vietnam and Thailand, has been a key destination for Chinese solar panel firms relocating their operations to bypass US tariffs on  (ICE KUALA LUMPUR)

Fonte notizia: 23 Gennaio 2025, The Straits Times