Robert Bosch’s RM2.2b project to draw suppliers to Penang

PENANG: Robert Bosch’s RM2.2 billion investment in a solar panel manufacturing plant in Batu Kawan, will see a few of its key suppliers setting up base in the state.

While Robert Bosch's director of sales Robert Tan declined to name the companies which serve its main plant in Arnstadt, Germany, it is believed they are in involved in poly silicon and wafer cutting technologies.

The RM2.2 billion investment is the largest single investment to date by Robert Bosch globally. It will have an annual capacity of 800 megawatts peak (MWp) for wafers and 620MWp peak for cells.

This would be on top of producing solar power plants with a total output of 640MWp and module production lines of 150MWp. Production output will be similar to its plant in Germany which has an annual revenue of 1 billion Euros.

Tan said on Friday, June 24 the decision to build the plant on a 80-acre site in Batu Kawan, Penang was after 10 years of deliberation.

These included visits to 45 sites in 23 countries, including 10 sites in Malaysia. The team visited some of these sites up to six times before making the decision to have the plant in Penang.

Among the key decision making point included the presence of its sister plant here for more than 40 years.

“The recommendations from our sister plant on the investment conditions and climate here in Penang over the last four decades was also the clincher for us to set up base here,” he said at a press conference.

Also present were Chief Minister Lim Guan Eng and Robert Bsoch GmbH director Rainer Osswald

Other deciding factors were a strong supply chain, a thriving electronics and electrical sector, good infrastructure support, human talent and very impressive and aggressive team from both the federal and state governments.

"The second Penang crossing (P2X) which is coming up in Batu Kawan will also easily link us to our plant in Bayan Lepas on the Island," said Osswald. He said 90% of the supplies would be sourced locally.

Unlike the other three solar power producers in the country, Robert Bosch's plant will cover the entire value chain from silicon crystals known as ingots and solar cells to the modules which can be installed on roofs or in solar power plants.

At least half of the 2,000 workers required for the plant would be engineers while the rest would consist of skilled workers.

The company plans to work with universities in Penang and other states to meet its need for engineers from the applied sciences field.

Lim said with 40 years of experience in the electronics industry, Penang has the talents to meet the skills required by Bosch, especially in wafer fabrication.

"After nine months of intense evaluation with investPenang and PDC, the company decided to locate their first offshore manufacturing facility here and this facility will be their second world site after Arnstadt in Germany.

"When Bosch Solar Energy's plant is running on full production capacity, it is anticipated to further facilitate Malaysia's aspirations to become the second largest producer of solar cells in the world in 2020, increasing our market share to 17% after China," Lim added.