Deye Technology To Invest $150 Million In Malaysia
Deye Technology’s new subsidiary in Malaysia, which will produce solar PV equipment and energy storage batteries, will come into existence once it has the approval from both Chinese and Malaysian governments. (Illustrative Photo; Photo Credit: Petrmalinak / Shutterstock)
Large-scale manufacturing enterprise integrating R&D, design, production, sales and services, Ningbo Deye Technology, said in a release that it has secured the approval of the board to invest $150 million to set up a wholly-owned subsidiary in Malaysia. The role of the subsidiary will be to produce solar photovoltaic equipment and energy storage batteries.
This is part of a strategic move, keeping in mind the uncertainties arising from the global trade environment and the macro environment.
The Office of the United States Trade Representative (USTR) recently raised Section 301 tariffs on polysilicon imported from China to 50%, while adding silicon wafers to the list of products and slapping a 50% tariff on these as well. In response, the Chinese Ministry of Commerce has demanded that the US reverse its decision to impose additional tariffs on Chinese companies.
In such a scenario, a subsidiary in Malaysia will enable Deye Technology to expand in the overseas market and tackle any arising adverse effects. However, the setting up of the subsidiary is subject to approvals from both the Chinese and Malaysian governments.