(Yicai) July 26 -- Chinese photovoltaic firm Drinda New Energy Technology has unveiled it will spend USD280 million to build the first phase of its high-efficiency solar cell factory in Oman.

Drinda will build the plat’s first production line in the Sohar Free Zone over an area of nearly 66 acres, the Haikou-based company said in a statement yesterday. With an annual production capacity of 5 gigawatts of high-efficiency solar cells, Phase I is expected to be completed next year after a nine-month construction period.

On June 13, Drinda announced it planned to invest USD700 million in a high-efficiency solar battery factory in Oman, with an annual production capacity of 10 GW. The plant would be built in two phases, each with a scheduled output of 5 GW.

Oman has great geographical advantages because it is close to the Middle Eastern, Asian, and European markets and signed long-term free trade agreements with major Western countries, Drinda noted. Moreover, Oman launched Vision 2040, a renewable energy development plan that created opportunities for PV firms.

The construction of high-efficiency battery factories in Oman will help Drinda promote its overseas production capacity layout, flexibly respond to the complex and volatile international trade environment, better reach the Middle Eastern, European, and US markets, and further the development of its overseas business, the company pointed out.

The decision to invest in Oman came after comprehensive consideration of the local political situation, fiscal and tax conditions, trade environment, and land, water, and electricity policies, Drinda added.

Founded in 2003, Drinda mainly produced auto parts and interior trims in the early stages. It shifted its focus to solar cells after acquiring Jietai New Energy Technology in 2022.

Jietai ranked fourth globally by solar cell shipments and first by N-type high-efficiency solar cell shipments last year, according to data from PV industry consultancy firm InfoLink Consulting.

Last year, Drinda’s proportion of overseas sales to the total soared to 4.7 percent from 0.3 percent the previous year. In the first quarter of this year, the company racked in CNY431 million (USD59.5 million) in overseas sales, accounting for nearly 12 percent of the total.

Drinda’s shares [SHE: 002865] were trading down 0.1 percent at CNY36.66 (USD5.06) as of lunch break in Shenzhen today, after rising 3.2 percent yesterday.

Editor: Futura Costaglione