RIYADH: Chinese solar supplier GCL Technology Holdings is in the advanced stages of discussions with Saudi Arabia on establishing its first overseas factory, marking a pivotal move as both nations seek to broaden their energy collaboration beyond traditional oil-based ties.
The company intends to build a factory in the Kingdom to produce 120,000 tons of polysilicon annually, according to a statement by GCL Technology’s joint CEO Lan Tianshi to Bloomberg. He added that the factory could start operations by 2025.
Lan went on to say: “Saudi Arabia has mature infrastructure and experience in industrial manufacturing.”
In addition, he said, the Kingdom’s abundant sunlight resources could facilitate its shift from being an oil giant to a solar energy producer.
While GCL Tech is exploring opportunities in other countries, he said their progress in Saudi Arabia has also advanced.
The company has already initiated the registration process in the Kingdom, deployed an on-site team of approximately 12 individuals, and actively engaged with local government authorities and the Royal Commission.
This development follows President Xi Jinping’s visit to Riyadh in December 2022 which focused on expanding energy cooperation between China and Saudi Arabia.
During the visit, both leaders discussed investment opportunities and explored shared interests in regional and international developments.
China’s invitation last month to major oil exporters, including Saudi Arabia, to join the Brazil, Russia, India, China, and South Africa bloc – known as BRICS – further highlights the growing energy collaboration between the two nations.
According to the Bloomberg report, Lan and other GCL Technology executives have traveled to Saudi Arabia and Qatar, emphasizing their commitment to expediting project implementation.
Furthermore, GCL Technology is contemplating expansion into Australia and Mexico to access the North American market, he said.
Lan anticipates a consolidation in the solar energy sector within the next two to three years, driven by competition, scale, talent, technical expertise, and research and development capabilities.
According to the China Photovoltaic Industry Association, reduced solar energy costs have stimulated demand not only in China but also in other regions. China, the largest economy in Asia, is on track to achieve a record-breaking installation capacity this year, potentially reaching an astonishing 140 gigawatts, as reported by Bloomberg.
By establishing a presence in Saudi Arabia, GCL aims to leverage the Kingdom’s substantial market potential and capitalize on favorable overseas polysilicon prices.
