The decision to cancel the construction of the plant to produce mono-crystalline solar cells by German conglomerate, Robert Bosch GmbH (Bosch), was due to market instability globally.

 

Director of investPenang (iP), Lee Kah Choon, said his team was currently in discussions and exchanging views with Bosch to facilitate the conglomerate to make other investments in the state.

“The announcement on the cancellation was made by Bosch's board of directors to iP and MIDA (Malaysian Investment Development Authority) on March 22, after a meeting held on the issue.

“Many other companies involved in the solar industry experienced losses due to the unstable market, the supply being more than demand has caused solar prices to go down,” he told a media conference in George Town today.

He said Bosch had only cancelled plans to build the plant for the production mono-crystalline solar cells on land leased to the company, however, there were many types of investments that can be undertaken in the said area.

Lee said iP would have a series of discussions with Bosch in relation to the matter and the first meeting will be held latest by next month.

“The cancellation (of the plant) will not affect the state's economic condition as claimed by certain parties, the decision was a business decision and the state government had nothing to do with it,” he said.

He said the investment of RM2.2 billion made by Bosch was not included in the state’s investment statistics by MIDA for last year.

Bosch Group had expressed its intention to build a mono-crystalline solar cell plant in 2010, and after 12 months of evaluation, the company selected a 32-hectare area at Batu Kawan Industrial Park (BKIP) with an investment of RM2.2 billion.

This would have been one of the largest investments in the history of the group, which is the main supplier globally for technology and services in automotive and industry, construction and consumer products.

Lee said the selection of BKIP was due to its strategic location, good infrastructure facilities as well as qualified workforce in electronics and semi-conductor.

He said Bosch Solar Energy AG's plan to build the plant to produce mono-crystalline solar cells, comprising ingot, wafer, cell and modules, was to realise Malaysia’s aspiration to become the world’s solar production centre.

- Bernama