Chinese Solar panel maker Trina Solar is planning to construct its third factory in Vietnam, according to three sources familiar with the matter. This move comes in response to punitive duties that will be imposed on Trina’s products made in Thailand by the United States. The new plant, which will cover 25 hectares of industrial land, is expected to begin production in 2025 with an investment of $400 million. Discussions with the company have also indicated a potential investment of $600 million in Vietnam. The sources have chosen to remain anonymous due to the confidentiality of the project details, and Trina has not responded to requests for comment.
The U.S. Department of Commerce recently concluded an investigation that found Trina, along with four other Chinese solar firms, used their plants in Thailand and other Southeast Asian countries to evade punitive tariffs on Chinese-made panels. These tariffs, set to take effect next year, currently only impact Trina’s Thailand operation. However, the practice of Chinese companies establishing facilities in Southeast Asia for export to the U.S. is under close scrutiny.
Vietnam is a significant player in the solar panel industry, accounting for about one third of all U.S. imports of solar panels in the first quarter of this year. Trina is already one of the largest solar panel makers in Vietnam, and their planned investment reflects the growing interest of Chinese businesses in setting up factories in the country to avoid escalating tensions between China and the U.S. in trade and geopolitics.
China has become a major investor in Vietnam, with $2.7 billion invested in the country from January to mid-August this year. This is more than five times the value of investments made by U.S. companies during the same period, according to Vietnamese government data.
Trina currently operates two plants in Vietnam, one producing silicon wafers and the other manufacturing solar cells and panels. The specific product that will be manufactured at the new plant has not been confirmed, with sources suggesting it could focus on either solar cells or silicon wafers. Trina is considering various industrial parks for the location of the new plant and has even consulted a feng shui expert to determine the most auspicious location.
The company is also taking into account Vietnam’s power supply issues as it weighs its expansion options. A heatwave in June caused a decrease in hydropower output, Vietnam’s second largest source of electricity, leading to temporary production suspensions due to power cuts.
In conclusion, Trina Solar’s plans to build its third factory in Vietnam are driven by the need to increase exports to the U.S. following punitive duties on its products made in Thailand. This investment reflects the growing interest of Chinese businesses in Vietnam and their efforts to avoid escalating tensions with the U.S. The specific details of the project remain confidential, and Trina is considering various factors, including power supply risks and feng shui, in its decision-making process.
The post Exclusive: China’s Trina Solar plans $400 mln Vietnam plant after US sanctions – sources appeared first on Rush Hour Daily News | Breaking News, U.S & World News, Politics & Opinions - News around the Worlds.
