KUALA LUMPUR (July 14): PA Resources Bhd (KL:PA) said it has renewed its agreement with First Solar Inc, First Solar Malaysia Sdn Bhd and First Solar Vietnam Manufacturing Co Ltd for the supply of aluminium extrusion profile used in the production of photovoltaic modules.

The RM1.31 billion contract is for an 18-month period from July 2026 to December 2027. This is the fifth supply agreement secured by PA Resources from First Solar.

In a filing with Bursa Malaysia on Tuesday, the aluminium extruder said the contract is expected to enhance its operational efficiency through improved production scheduling, materials planning, manpower utilisation and logistics coordination.

It is expected to contribute positively to the group’s earnings and net assets, the group added.

Group managing director Tan Sri Lau Kuan Kam noted that the contract is the largest in the group’s history.

"Securing this contract amid ongoing geopolitical uncertainties and a challenging global economic environment reflects First Solar’s continued confidence in our product quality and ability to consistently meet its requirements,” Lau said in a statement.

“As global demand for renewable energy continues to grow, we remain optimistic about the opportunities ahead. To support this growth, our capacity expansion plans are progressing well.

"Construction of our new manufacturing facility is currently underway and, upon completion, is expected to double our production capacity. We are targeting the facility to be operational next year, placing us in a stronger position to meet growing customer demand,” he added.

Upon completion, the new plant will more than double the group’s monthly aluminium extrusion capacity to 8,500 tonnes from 3,500 tonnes.

Lau also disclosed that PA Resources is collaborating with a foreign strategic partner to venture into the system window and door segment, offering enhanced soundproofing and thermal insulation capabilities through its subsidiary PA Project Marketing Sdn Bhd.

“We believe this business presents significant growth potential for the group, given the increasing demand for energy-efficient building solutions and the limited availability of comprehensive one-stop system providers in the Malaysian market. This initiative will further diversify our revenue streams and broaden our product offerings,” he added.

PA Resources’ shares have rebounded 68% from their March low of 11 sen. The stock closed two sen or 12.12% higher at 18.5 sen on Tuesday, giving the group a market capitalisation of RM278 million.