KUALA LUMPUR (Jan 18): PA Resources Bhd, the country’s leading aluminium extruder company, has bagged an extension of supply agreement from First Solar, Inc, First Solar Malaysia Sdn Bhd and First Solar Vietnam Manufacturing Co Ltd to supply goods for production of photovoltaic modules.

The total contract is valued up to RM1.08 billion (US$231.9 million) for the contract period of Jan 2, 2024 to July 1, 2025, and may be renewed by US-based solar technology company First Solar for another one-year period.

In a filing with Bursa Malaysia on Thursday, PA Resources said it has received the renewal of the master supply agreement from First Solar, which supersedes an earlier agreement signed in March 2022 for a contract period from Jan 2, 2024 to July 1, 2024.

“We are delighted to announce the fourth extension from First Solar, with a contract value exceeding RM1 billion which is also the biggest contract in terms of value awarded to us to date. This underscores the trust that First Solar has in us, which is founded on our ability to manufacture products that adhere to their stringent standard," PA Resources group executive chairman Tan Sri Chan Kong Choy said in a separate statement.

“Given that the demand for solar energy is escalating globally, we are proud to be able to contribute to the shift towards green energy through First Solar. This contract will provide us with stable financial growth in the future and continue to expand our business,” he added.

PA Resources shares closed 0.5 sen or 1.67% higher to 30.5 sen on Thursday, giving it a market capitalisation of RM447.9 million. A total of 19.83 million shares changed hands. The stock has fallen 10.3% over the past one year, but is up 10.3% so far this year.