[SMM Analysis] Zhuhai Hongjun announced the construction of a 6 GW annual-capacity HJT photovoltaic module factory in Saudi Arabia

Recently, Zhuhai Hongjun SoleFiori (a subsidiary of China's Hongjun New Energy) announced a partnership with local Saudi counterparts to build a 6 GW HJT PV module factory. While this appears to be a market-level expansion, it reflects strategic positioning and industry chain realignment within Sino-Saudi energy cooperation. SoleFiori’s HJT modules are claimed to feature over 95% bifacial efficiency and a low temperature coefficient—advantages that translate directly into more stable and higher power generation in high-temperature, high-irradiation, and sand-prone desert environments. By locating production in Saudi Arabia, the company not only positions itself closer to future demand markets while reducing logistics and tariff risks, but also embeds itself into the local industrial system through localized manufacturing, enabling two-way integration of technology and capital.

Source:Baidu

This move is not isolated. As early as 2024, Jinko (JinkoSolar) announced a joint venture with Saudi Arabia’s Public Investment Fund (PIF) subsidiaries Renewable Energy Localization Company (RELC) and Vision Industries to build a 10 GW solar cell and module plant, with equity shares distributed 40%:40%:20%. Jinko’s new facility is expected to commence production in 2026, adding a key piece to its global network. Meanwhile, Jinko has already supplied a total of 3 GW for multiple projects in Saudi Arabia.

From a macro perspective, Chinese PV producers are transitioning from an “export” model to “localized production” in the Middle East/Gulf region. Against the backdrop of European and American tariff barriers and geopolitical risks, establishing production capacity overseas serves as a strategic hedge. At the same time, Saudi Arabia leverages such joint ventures to facilitate technology transfer, job creation, and industrial upgrading. In the long run, if more producers localize, Saudi Arabia and neighboring markets could not only absorb module capacity but also cultivate mature local supply chains, potentially forming a new regional PV manufacturing hub.

Of course, such arrangements are not without challenges. Factors such as whether factories can be completed on schedule and achieve planned capacity, how quickly local supporting parts supply can ramp up, the pace of training local technical and management personnel, and potential future adjustments to trade policies or subsidies will all play a role. More critically, even with local production sites, if key upstream materials—such as wafers, films, and glass—remain import-dependent, the degree of localization will remain limited. Overall, however, SoleFiori’s decision to build a 6 GW HJT plant in Saudi Arabia marks a significant step for Chinese manufacturers in participating in the global energy transition and reshaping the PV industry chain landscape.