Solid Group Inc. is teaming up with a Singapore-linked investment group to establish a USD40-million venture that will build and operate a Philippine factory producing solar photovoltaic cells and modules for export.
The company’s board approved a USD20-million investment by its wholly owned offshore subsidiary, Brilliant Reach Ltd. (BRL), for a 50-percent stake in the joint venture, with the remaining equity to be held by MSRenewable Investment Holding Ltd., which has Singaporean investors.
The joint venture company will be incorporated in Singapore, while its manufacturing facility will be located in the Philippines. The plant will produce solar cells, modules and related products primarily for export markets.
Solid Group will fund its investment through an additional USD8-million capital infusion into BRL, which will be combined with USD12 million in the subsidiary’s existing internal cash reserves.
The proposed venture marks Solid Group’s entry into solar manufacturing, giving the diversified Philippine company an opportunity to participate in the expanding renewable energy supply chain beyond its existing business interests.
Solid Group said the investment was intended to create additional revenue streams and support long-term growth by broadening its portfolio into renewable energy products.
However, the potential financial returns will depend on the successful development and operating performance of the joint venture, the company said.
The arrangement also places the manufacturing operation in the Philippines while using a Singapore-incorporated investment vehicle, bringing together local industrial capacity and foreign investment.
The planned facility could position the country to capture a larger share of the solar equipment supply chain, particularly as demand for photovoltaic products expands alongside investments in renewable energy.
Solid Group did not disclose the factory’s location, construction timetable, production capacity or expected start of commercial operations in its announcement.
