KUALA LUMPUR: Global player in the solar energy industry Sun Bear Solar Sdn Bhd — a wholly-owned subsidiary of Sun Bear Solar, Ltd, Hong Kong — is investing RM5.2 billion to build the first solar glass manufacturing plant in Malaysia.

The plant will produce solar glass for solar panel and module applications to cater to the photovoltaic industry and will be located at the Kota Kinabalu Industrial Park.

Sun Bear Solar chairman and CEO Lee Holt Judd said a total of RM2.2 billion would be invested in the first phase of the project, of which the construction work was expected to begin within this year.  

"The money would be used in setting up the plant as well as to purchase the necessary machineries," she told reporters at a briefing here today.

Judd said the balance of RM3 billion would be invested under the second phase to expand the plant on the 300 acre land.

She said the plant would produce two lines of solar glasses — the float-glass and pattern-glass — for the use of the solar energy industry. She added that the first production was scheduled for the first quarter of 2012.

Judd said Malaysia was chosen because of its commitment to solar panel manufacturing growth and the availability of high quality raw materials.

"Sabah has a significant quantity of low ion silicon sands and limestone which are essential for the solar glass making," she added.

"The products from the plant would be exported to markets in West Malaysia as well as the Southeast Asia countries," she said.

Meanwhile, Malaysia Industrial Development Authority (Mida) director-general Datuk Jalilah Baba said the solar industry was one of the growth areas identified to propel Malaysia to a high-income economy and high-technology industrial base.

"The investment by Sun Bear Solar is clearly a testament to the country's competitiveness and its emphasis on high value-added and capital intensive nature of manufacturing," she said.

She said currently, five to six photovoltaic makers were undertaking the due diligence process to set up their facilities here.

The solar industry has been targeted as Malaysia's priority project to generate clean energy and new growth areas in high value-added manufacturing.

Under the 10th Malaysia Plan, the government expects to generate 215 megawatts from solar energy, thereby increasing its solar contribution from 0.0013% to 1.5%.

"As a high-technology driven industry, solar manufacturing has the potential to contribute up to 4% of the country's gross domestic product in 2010," Jalilah said.

"The solar industry expanded by a record high of 75% in 2009, reaching a worldwide production volume of 7,500 megawatt peak and booming into a RM115 billion business in 2009."

The global market volume for solar-based products is forecast to increase to RM180 billion this year, and the market is expected to exceed RM500 billion in 2020.