NEW YORK: A Taiwanese solar panel company recognises Malaysia's pioneering work in the solar panel sector and has expressed an interest to enter into cooperation with a reliable Malaysian partner.

Motech Industries Inc, which is located in Tainan City, started in 1981 as a testing and measurement instruments designer and manufacturer but evolved into a full-service global solar company.

The company has its own research and development operations as well as manufacturing facilities for solar products and services, ranging from photovoltaic (PV), silicon wafers, PV cells and PV modules to PV power systems.

The company, which had an annual revenue of US$756 million in 2015 and claims to be the largest merchant PV cells manufacturer in the world with a 3.3 Gigawatt (GW) production capacity, has maintained commercial ties with Malaysian producers of solar panels even though Malaysians do not make solar cells needed for the solar panel end product.

"Malaysia is a strong and emerging site for international companies dealing in solar panels, produces some of the components in solar panels, and also has a small production facility for solar cells.

"Malaysia imports solar cells from Taiwan and China which are the largest producers of solar cells. Demand for solar panels is much higher. Aluminium frames and glass are also needed, some of which can be sourced in Malaysia itself.

"In Malaysia, solar panels are mostly assembled though the country is also gradually moving towards manufacturing the full product.

"But Malaysia, thanks to its early involvement in the solar panel business, has become an important partner in the solar supply and value chain," Peng Heng Chang, Motech's chairman and CEO, said in an interview with Bernama on Friday in New York.

Chang said his company's major markets are the United States, China, Japan, Europe, India and Southeast Asia.

"Southeast Asian markets, particularly Indonesia and Malaysia, are promising for us. The regional demand is increasing. We have no collaboration yet with a Malaysian partner, but we are open to looking into any form of cooperation with a local (Malaysian) company.

"We already have a collaboration with an Indonesian partner, and would also consider collaboration with a Malaysian partner. There are two other big Taiwanese companies that have formed joint ventures in Malaysia with Malaysian partners.

"Yes, we would also be interested in collaborating with a Malaysian company, but we are keen to find a good and reliable partner," Chang said.

Chang said global supply of solar panels amounts to 90GW with demand at about 70GW.

"However, many of the solar panel plants are old and need to be upgraded and modernised, and will have to be replaced, thus generating further demand," Chang said.

He said Western suppliers have their strengths in supplying equipment needed for the manufacture of these products while Southeast Asia, including Malaysia, has a better qualified and cost-effective labour force.

"I see demand in Malaysia and Indonesia for solar cells is growing. Solar panels have become attractive, particularly for the smaller islands in Malaysia and Indonesia.

"Solar panels are suitable for the islands because of their detached location from each other," he noted.

The solar panel industry in Malaysia, Chang said, is characterised by the pioneering prowess displayed by Malaysian companies which work closely with the country's research institutions.

"In particular, the innovation and technological level in Malaysia is high, even though Malaysia's focus so far has been on assembly. However, this is changing and Malaysia is making its own solar cells for the panels.

"The synergies emerging from cooperation between Taiwanese and Malaysian companies can be very beneficial to both sides, given Malaysia's strong base in electronics and semi-conductors, and Taiwan's abundant availability of qualified industry experts.

"This combination can build up a strong base for partnership in the solar panel business," Chang said.

Chang is part of a visiting Taiwan business and trade delegation led by Kuo-Hsin Liang, the chairman of Taiwan External Trade Development Council, the island republic's trade promotion agency.

The delegation, which is also visiting Washington, DC to participate in the Investment Summit being organised by the US Commerce Department, includes heavyweight corporate players such as AAEON Technology, Aerospace Industrial Development Corp, Fair Friend Group, Formosa Plastics Group, Formostar Garment Co, KENDA Rubber Industrial Co, Kinpo Electronics Inc and TEX-RAY Industrial Co.

The delegation also includes high-ranking officials representing the Bureau of Foreign Trade in Taiwan's Ministry of Economic Affairs. -- Bernama