GCL Tech Eyes Saudi Arabia for 1st Foreign Plant
- GCL Technology Holdings Ltd. is in advanced talks to build its first foreign plant in Saudi Arabia. The plant will produce 120,000 tons of polysilicon a year and could start operations as early as 2025. Lower solar prices have increased demand in China and around the world, making this expansion into new markets possible. GCL is considering opportunities in Mexico and Australia as well.
GCL Technology Holdings Ltd., a Chinese solar sector supplier, is in advanced talks to build its first foreign plant in Saudi Arabia. The plant could produce 120,000 tons of polysilicon a year, a key ingredient in solar panels, and start operations as early as 2025. The move is part of an energy cooperation initiative between China and Saudi Arabia after President Xi Jinping's visit in December. Prices of polysilicon have dropped due to oversupply, but increased demand in China and elsewhere has given GCL a chance to expand into new markets. GCL has also considered potential expansions into Mexico and Australia. Lower solar prices have boosted demand and China is expected to install record capacity this year. The Middle East offers an entry point to the global market and polysilicon from here could more easily reach consumers in Africa and Europe.
Will GCL's Foreign Plant in Saudi Arabia Benefit Global Solar Market?
- GCL has been in advanced talks with Saudi Arabia to build the first foreign plant, which could increase solar panel production by 120,000 tons per year.
- The move is part of an energy cooperation initiative between China and Saudi Arabia after President Xi Jinping's visit.
- This could be a major step for GCL into the global solar panel market, with potential expansions into Mexico and Australia as well.
- Lower solar prices have driven demand from China, and the Middle East offers an entry point to the global market.
- Polysilicon from the Saudi Arabia plant could more easily reach consumers in Africa and Europe, creating new opportunities for GCL.
- Increased solar panel production could benefit the global solar market, making solar energy cheaper and more accessible.