IPOH (Oct 18): China-based encapsulant film manufacturer Zhejiang Sinopont Technology Co Ltd signed a memorandum of understanding (MOU) with Perak Investment Management Centre (InvestPerak) on Wednesday to reinforce cooperation between the two parties.

In a joint statement on Wednesday, Zhejiang Sinopont and InvestPerak said the MOU was inked at Zhejiang Sinopont’s headquarters in Hangzhou, China, witnessed by Perak Menteri Besar Datuk Seri Saarani Mohamad.

Also present were Zhejiang Sinopont chairman Xianglai Cao, Hangzhou Xiaoshan District Bureau of Commerce director general Yanping Wang, and Malaysian Investment Development Authority (Mida) Shanghai director Steven Cheng Seng Hock.

The signing of the MOU was part of the Perak menteri besar’s investment promotion mission to China from Oct 15 to 21, which included Perak state secretary Datuk Ahmad Suaidi Abdul Rahim, Perak Corridor Tourism, Industry, Investment and Development Committee chairman Loh Sze Yee, and other senior officials.

According to the statement, Zhejiang Sinopont — through its fully-owned subsidiary in Malaysia, Sinopont Everthriving (Malaysia) Sdn Bhd — is currently in the process of setting up new manufacturing facilities in the Tasek Industrial Park.

The plant is expected to start its production by the first quarter of 2024, producing solar cell encapsulant film, with production capacity of 85 million sq m encapsulants to cover about 10GW demand. 

Sinopont’s investment in Perak will be in a few phases, and is expected to reach a production capacity of 300 million sq m encapsulants to cover about 30GW demand, with total investment estimated at about RM2 billion, including future projects in Perak.

The statement said Sinopont Everthriving (Malaysia)’s manufacturing facilities investment is expected to create around 300 employment opportunities on completion when running at full capacity.

Sinopont will strengthen the solar panel manufacturing industry ecosystem in Malaysia, particularly within the northern region via the project, the statement said.

Saarani said the investment underscores foreign investors’ confidence in Perak, and the state government will “fast-track” the approval process via InvestPerak.

"Furthermore, the state will continuously strengthen the good relationship with the Ministry of Investment, Trade and Industry and Mida to promote Perak as the preferred investment destination in Malaysia," he said.

InvestPerak chief executive officer Mohamad Hashim Abdul Ghani said Perak is strategically located at the midpoint between Penang and Selangor — two industry powerhouses — making it a favourable location for companies producing products or providing services for multinational companies.

They can easily secure both markets, and Perak has always been ready to support industrial expansion from neighbouring states, he said.

With its infrastructure, abundant natural resources, high-skilled talents, matured industrial ecosystems and competitive cost of doing business, Perak is starting to emerge as a focus destination for new investments, he said.

Sinopont is one of the leading enterprises in encapsulant film in China. InvestPerak was established in January 2006 to serve as the first point of contact for investors in the manufacturing and services sectors.