China’s GCL Technology Holdings, a solar-sector supplier will be setting up the firm’s first overseas factory in Saudi Arabia. As per reports, the world’s second-largest manufacturer of polysilicon, a key ingredient in solar panels, is looking to build a plant in the Middle Eastern nation that will produce 120,000 tonnes a year. The firm’s Joint Chief Executive Officer Lan Tianshi revealed that GCL Tech could start operations as early as 2025.
“Saudi Arabia has mature infrastructure and experience in industrial manufacturing,” said, Lan said, talking to media. He cited the country’s abundant sunlight as an advantage to support its transition from oil giant to solar energy producer. He further informed that GCL Tech has plans to establish outposts in other countries, although it is most advanced in Saudi Arabia. “The company has already filed for registration in the nation, has a team on the ground and is in talks with the local government and royal commissions, “ he said.
As per market reports, lower solar prices have boosted demand both in China and elsewhere. Asia’s largest economy is set to install record capacity this year, as much as 140 gigawatts, according to the China Photovoltaic Industry Association. It is expected that by setting up new infrastructure in Saudi Arabia, GCL will tap the country’s large potential market and the higher prices that polysilicon yields overseas. The firm believes that from the strategically located Middle East will help the material reach consumers in Africa and Europe.