PA Resources bags RM600m First Solar contract

PA Resources Bhd has bagged a RM600 million contract to supply materials to Nasdaq-listed First Solar Inc, First Solar Vietnam Mfg Co Ltd and First Solar Malaysia Sdn Bhd for the production of solar photovoltaic modules.

In a filing with Bursa Malaysia, PA Resources said its whollyowned subsidiary, PA Extrusion (M) Sdn Bhd, has signed a supply three-year agreement with the three companies.

“The agreement is expected to contribute positively to the group’s earnings and net assets for the current and future financial years,” it said.

Shares of PA Resources on Bursa Malaysia closed 0.5 sen higher at 11.5 sen yesterday.

Earlier this week, United States President Donald Trump approved duties of as much as 30 per cent on solar equipment imported into the US.

Trump approved four years of tariffs that start at 30 per cent in the first year and gradually drop to 15 per cent. The first 2.5 gigawatts of imported solar cells are exempt for each year.

The duties are lower than the 35 per cent rate the US International Trade Commission had recommended in October.

The commission said the idea behind the tariffs was to raise the costs of cheap imports, particularly from Asia, and level the playing field for those who manufacture the parts domestically.

Since Trump announced this new ruling, shares of the US’s largest solar panel maker, First Solar Inc, on the New York Stock Exchange have been on the rise.