KUALA LUMPUR (March 24): PA Resources Bhd has received a further one-year extension of its agreement to supply raw materials to the First Solar group for the production of photovoltaic modules.
In a filing with Bursa Malaysia, the aluminium extrusion company said the extended contract is worth about RM550 million, and will be effective until July 1, 2014.
The First Solar group comprises Nasdaq-listed First Solar Inc and its manufacturing units First Solar Vietnam Mfg Co Ltd and First Solar Malaysia Sdn Bhd.
PA Resources, through its wholly-owned subsidiary PA Extrusion (M) Sdn Bhd, clinched the deal with First Solar in 2018. The initial three-year agreement had a contract value of RM600 million.
In May last year, the group secured a two-year extension to the agreement with an approximate value of RM800 million.
The group said the latest extension will positively contribute to its current and future earnings and net assets.
PA Resources shares settled one sen or 2.7% higher at 38 sen, giving a market capitalisation of RM482.44 million. The stock has declined 22.45% year-to-date.