China Eximbank provides $62 million loan for Solar Cell and Solar Module Production Line Project (Linked to Project ID#62478)

In January 2015, the U.S. Department of Commerce finalized anti-dumping duty rates of 52% and anti-subsidy rates of 39% on the import of Chinese solar panels. Two months later, in March 2015, Jinko Solar Holding Co., Ltd. (晶科太阳能) announced plans to construct a solar cell and module manufacturing facility in Penang State within Malaysia. It reportedly decided to build the facility in order to avoid the imposition of countervailing duties and anti-dumping duties in the U.S. Then, on August 3, 2015, China Eximbank issued two separate loans to Jinko Solar Holding Co., Ltd. (晶科太阳能) for the Solar Cell and Solar Module Production Line Project: an RMB 50 million loan (captured via Project ID#62478) for near-term working capital and a $62 million loan (captured via Project ID#62477) for long-term fixed assets and mid-term working capital. The borrowing terms of these loan are unknown. The borrower was to use the proceeds from the two loans to support a solar cell and solar module production facility (factory) in the Perai Free Industrial Zone (Perai FIZ) within the city of Seberang Perai and the state of Penang. The factory was officially inaugurated and put into operation on May 26, 2015. It had an initial designed annual production capacity of 500MW for solar cells and 450MW for solar modules and it now employs more than 5,000 people (nearly 80% of whom are locally recruited). After the factory was put into operation, it underwent several expansion phases. Phase 2 commenced in January 2016 and ended in June 2016. Phase 3 began during the second half of 2016. As of the end of 2017, the project had achieved 1700MW and 1300MW of solar cell capacity and solar module capacity, respectively. As of the end of 2018, the project had constructed 7 separate factories in the Perai FIZ and achieved 3500MW and 3000MW of solar cell capacity and solar module capacity, respectively. In 2020, a new implementing Agency, Risen Energy, joined the project. In 2020, a new implementing Agency, Risen Energy, joined the project.

Additional details

1: The Chinese project title is 马来西亚光伏太阳能电池片及光伏太阳能组件生产线项目 or 马来西亚槟城太阳能电池片项目 or 晶科能源马来西亚槟城项目. This project is also known as the Malaysia Photovoltaic Solar Cell and Photovoltaic Solar Module Production Line Project. 2: JinkoSolar Holding Co., Ltd. is currently the world's largest solar panel manufacturer, shipping 11.4 GW of modules in 2018. Headquartered in Shanghai, China, the company started out as a wafer manufacturer in 2006 and went public on the New York Stock Exchange in 2010.

Number of official sources

12

Number of total sources

16