KUALA LUMPUR: P.A. Resources Bhd
has renewed an 18-month supply agreement worth RM1.3bil with First Solar for aluminium extrusion profiles used in the production of photovoltaic modules.
In a statement, the aluminium extruder company said the contract was secured through its wholly owned subsidiary, P.A. Extrusion (M) Sdn Bhd, and involves First Solar Inc, First Solar Malaysia Sdn Bhd and First Solar Vietnam Manufacturing Co Ltd.
The contract, valued at approximately US$322.2mil (RM1.3bil), will run for 18 months from July 1, 2026.
P.A. Resources said the latest award was its fifth supply agreement with First Solar and reflected the long-standing relationship between the companies, as well as the group’s ability to meet the solar manufacturer’s stringent quality standards.
The contract is also the largest secured in P.A. Resources’ history.
P.A. Resources group managing director Tan Sri Lau Kuan Kam said: “We are elated to secure this contract, which represents our largest contract award, to date in the group’s history. Securing this contract amid ongoing geopolitical uncertainties and a challenging global economic environment reflect First Solar’s continued confidence in our product quality and ability to consistently meet its requirements.
“This contract provides a solid foundation for the group’s next phase of growth, reinforcing our position within the PV supply chain. As global demand for renewable energy continues to grow, we remain optimistic about the opportunities ahead,” he said.
The group is also expanding its production capacity through the construction of a new plant on recently acquired land.
It has obtained the necessary regulatory approvals, including the development order, and construction is underway.
The new facility is targeted to begin operations in the second half of 2027. Upon completion, it is expected to more than double the group’s monthly production capacity to 8,500 tonnes from 3,500 tonnes currently.
“To support this growth, our capacity expansion plans are progressing well. Construction of our new manufacturing facility is currently underway and, upon completion, is expected to double our production capacity.
“We are targeting the facility to be operational next year, placing us in a stronger position to meet growing customer demand,” Lau said.
He added that the group had also improved its manufacturing processes and efficiency through automation and other operational enhancements.
“Over the years, we have continuously improved our process flow and manufacturing efficiency through automation and operational enhancements. These initiatives have enabled us to achieve cost savings and improve productivity, allowing us to better serve our customers while creating long-term value for our shareholders,” he said.
Separately, P.A. Resources is collaborating with a foreign strategic partner to enter the system window and door market through its subsidiary, P.A. Project Marketing Sdn Bhd.
The products will offer enhanced soundproofing and thermal insulation capabilities, targeting rising demand for energy-efficient building solutions.
The venture is also expected to diversify the group’s revenue streams and broaden its product range.
“In addition to our existing business, we are collaborating with a strong foreign strategic partner to venture into the system window and door segment, which offers enhanced soundproofing and thermal insulation performance.
“We believe this business presents significant growth potential for the Group, given the increasing demand for energy-efficient building solutions and the limited availability of comprehensive one-stop system providers in the Malaysian market.
“This initiative will further diversify our revenue streams and broaden our product offerings,” Lau added.
