PA Resources secures RM600mil contract

PETALING JAYA: PA Resources Bhd has secured a RM600mil contract from the First Solar group for the supply of certain goods used in the production of solar photovoltaic modules.

In a filing with Bursa Malaysia, PA Resources said its wholly owned subsidiary PA Extrusion (M) Sdn Bhd had entered into a supply agreement with US-based First Solar Inc, First Solar Vietnam Mfg Co Ltd and First Solar Malaysia Sdn Bhd for the purpose of a mutually beneficial arrangement.

The supply agreement will involve the First Solar group purchasing certain materials or other goods from PA Extrusion for use in the production of solar photovoltaic modules for a contract value of about RM600mil.

“The agreement shall commence from 2018 and shall remain effective for three years,” PA Resources said.

“The agreement is expected to contribute positively to the earnings and net assets of the PA Resources group for the current and future financial years”

PA Resources’ shares have doubled in value since the start of the year. The counter gained half a sen to close at 11.5 sen yesterday.

PA Resources specialises in the production of aluminum billets, extrusion profiles and downstream aluminum product-related services.

The group’s managing director Datuk Seri Lau Kuan Kam ( pic) owns a 5.37% stake in PA Resources.