Yingli Solar has announced plans to set up its first solar panel manufacturing unit outside China.
Yingli Solar’s subsidiary Hainan Yingli New Energy Resource announced the joint venture with Demeter Power to set up a solar panel manufacturing facility in Thailand. Panels manufactured at the facility will be marketed under Yingli’s brand.
Hainan Yingli New Energy Resource will invest $19 million in the joint venture and retain a 40% share in the joint venture. The facility is expected to be operation in the second half of this year.
Several Chinese and Taiwanese companies have started developing overseas manufacturing facilities so as to circumvent the anti-dumping duties levied by the European Union. A number of Chinese companies, including Trina Solar and Zhongli Talesun, have extensive plans to set up production facilities in Thailand. The increased interest in the south-east Asian country is the result of the Thai Government’s proactive policies to promote investment in the solar power production as well as manufacturing sectors.
Trina Solar will set up their manufacturing facility with an annual production capacity of 500 MW solar photovoltaic modules and 700 MW of solar cells. The facility is expected to be operational by early 2016. Zhongli Talesun will set up a manufacturing facility and also develop 1 GW of solar power projects over the next 3 years.
Taiwan-based Gintech Energy also announced $45 million investment to develop 350 MW solar cell production facility last year.
The modules manufactured at the facility may also be used by Yingli itself to set up power plants in Thailand. In late 2014, Yingli Green Energy Holding and Huawei Technologies signed an agreement to jointly develop solar power projects in Thailand.