JinkoSolar Partners with RELC and VI for 10 GW Solar Cell and Module Production in Saudi Arabia
Partnership with RELC and VI to Establish High-Efficiency Solar Manufacturing Facility
JinkoSolar Forms Strategic Joint Venture in Saudi Arabia
JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS) is one of the largest and most innovative solar module manufacturers globally. Recently, the Company announced a significant development: its indirectly majority-owned subsidiary, JinkoSolar Middle East DMCC (“Jinko Middle East”), has entered into a shareholders agreement (the “Agreement”) with Renewable Energy Localization Company (“RELC”). RELC is a wholly-owned subsidiary of the Public Investment Fund (“PIF”) of Saudi Arabia and a leader in renewable energy technologies. Additionally, the Agreement includes Vision Industries Company (“VI”), a limited liability company in Saudi Arabia focused on developing green energy industrial projects.
Equity Distribution in the Joint Venture
The Agreement establishes a joint venture in Saudi Arabia, with Jinko Middle East, RELC, and VI sharing equity. Specifically, Jinko Middle East and RELC will each hold 40% ownership, while VI will possess a 20% stake. This distribution promotes collaboration among the partners, allowing each to leverage its strengths in the renewable energy sector. Formation of the joint venture is subject to customary preconditions, including obtaining necessary regulatory approvals from the Saudi government. This step ensures compliance with local laws and facilitates a smooth project launch.
Manufacturing Facility Development
The primary objective of the joint venture involves constructing and operating a high-efficiency solar cell and solar module manufacturing facility in Saudi Arabia. This facility represents a significant investment, projected at approximately US$1 billion. Funding will derive from a mix of internal resources and external financing sourced from financial institutions. Furthermore, the facility’s design will adapt to market conditions, ensuring optimal production efficiency.
Once operational, this manufacturing facility is expected to achieve an annual production capacity of 10 gigawatts (GW) for both high-efficiency solar cells and solar modules. Such capacity will have a substantial impact on the renewable energy landscape in Saudi Arabia, addressing the growing demand for sustainable energy solutions in the region.
Leadership Perspectives on the Partnership
Leadership at JinkoSolar has expressed enthusiasm regarding the partnership. Mr. Xiande Li, Chairman and CEO of JinkoSolar, emphasized its strategic importance. He remarked, “We are proud to enter this partnership with RELC and VI, two leaders in their fields. This collaboration marks a milestone in our globalization strategy, which aims to optimize our global manufacturing and marketing infrastructure. By enhancing our competitiveness, we can better serve our customers and contribute to environmental sustainability.”
In addition, Mohammed AlBalaihed, Head of the MENA Energy and Utilities Sector of PIF and Chairman of RELC, shared his views. He noted, “We are excited to partner with JinkoSolar on this groundbreaking joint venture. By leveraging JinkoSolar’s advanced N-type technology and our local expertise, we believe this facility will drive innovation in the solar industry. This collaboration is a significant milestone in advancing Saudi Arabia’s Vision 2030, which seeks to diversify the economy and enhance sustainable energy production.”
About JinkoSolar Holding Co. Ltd.
JinkoSolar (NYSE: JKS) is renowned for its significant contributions to the global solar industry. The Company distributes a wide array of solar products and provides solutions to utility-scale, commercial, and residential clients. JinkoSolar operates across various regions, including China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the UAE, Italy, Spain, France, Belgium, the Netherlands, Poland, Austria, Switzerland, and Greece.
As of March 31, 2024, JinkoSolar operates 14 production facilities worldwide and maintains a robust presence with 26 overseas subsidiaries in key markets such as Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the United States, Mexico, Brazil, Chile, Australia, Canada, Malaysia, the UAE, Denmark, Indonesia, Nigeria, and Saudi Arabia. This extensive network enhances the Company’s ability to respond effectively to global demand.
Additionally, JinkoSolar has established a comprehensive global sales network. Dedicated sales teams operate in countries such as China, the United States, Canada, Brazil, Chile, Mexico, Italy, Germany, Turkey, Spain, Japan, the UAE, the Netherlands, Vietnam, and India. This widespread access ensures that JinkoSolar’s innovative solar solutions are available to a diverse range of customers, reinforcing its leadership in the solar energy market and contributing to a sustainable future.
