PA Resources Bhd has renewed its supply agreement with First Solar Inc, First Solar Malaysia Sdn Bhd and First Solar Vietnam Manufacturing Co Ltd to supply aluminium extrusion profiles used in the production of photovoltaic modules.
The new contract is valued at RM1.31 billion (USD 321.22 million) and covers an 18-month period from July 2026 to December 2027. According to the company, it is the fifth supply agreement awarded by First Solar.
In a filing with Bursa Malaysia, PA Resources said the contract is expected to improve operational efficiency through better production scheduling, material planning, workforce utilisation and logistics coordination. The company also expects the agreement to contribute positively to its earnings and net assets.
Group Managing Director Tan Sri Lau Kuan Kam described the agreement as the largest contract in the company’s history, adding that securing the deal amid geopolitical uncertainty and a challenging global economy reflects First Solar’s continued confidence in the company’s products and manufacturing capabilities.
Lau said construction of PA Resources’ new manufacturing facility is progressing and is expected to more than double the group’s monthly aluminium extrusion capacity from 3,500 tonnes to 8,500 tonnes once it becomes operational next year.
He also said the company is working with a foreign strategic partner through its subsidiary PA Project Marketing Sdn Bhd to enter the system window and door market, offering products with enhanced soundproofing and thermal insulation. According to Lau, the move is intended to diversify the group’s revenue base and expand its product portfolio as demand grows for energy-efficient building solutions.
The stock closed 12.12 per cent higher at 18.5 sen on Tuesday, giving the company a market capitalisation of RM278 million (USD 68.17 million).