KUALA LUMPUR: P.A. Resources Bhd has bagged a RM600 million contract to supply materials to Nasdaq-listed First Solar Inc, First Solar Vietnam Mfg Co Ltd and First Solar Malaysia Sdn Bhd for the latter's use in the production of solar photovoltaic modules.
In a filing with Bursa Malaysia, PA Resources said its wholly-owned subsidiary P. A. Extrusion (M) Sdn Bhd’s supply agreement with the three companies is for three years.
"The agreement is expected to contribute positively to the group's earnings and net assets for the current and future financial years," the filing added.
Today, PA Resources shares on Bursa Malaysia closed 0.5 sen higher at 11.5 sen.
Earlier this week, President Donald Trump approved duties of as much as 30 per cent on solar equipment made outside and imported into the US.
Trump approved four years of tariffs that start at 30 per cent in the first year and gradually drop to 15 per cent. The first 2.5 gigawatts of imported solar cells are exempt for each year.
The duties are lower than the 35 per cent rate the US International Trade Commission had recommended in October 2017.
The commission said the idea behind the tariffs is to raise the costs of cheap imports, particularly from Asia, and level the playing field for those who manufacture the parts domestically.
Since Trump announced this new ruling, shares of US largest solar panel maker First Solar Inc on New York stock exchange have been on the rise.