Arctech, a leading provider of photovoltaic (PV) tracking systems, has recently signed a land lease agreement with Saudi Arabia’s MODON for the construction of a new factory in Jeddah. This marks a significant milestone in Arctech’s overseas production expansion, as the factory will become its second overseas base, with the first one located in Gujarat, India.
Spanning an area of approximately 97,00㎡, the Jeddah factory will specialize in manufacturing high-quality PV tracking systems with a capacity of 3GW. This will support the growing demand for PV projects in the Middle East market. By utilizing its global supply chain, Arctech’s localized production in Saudi Arabia will enhance the resilience of its supply chain overseas, enabling a local delivery capacity of up to 10GW.
In addition to strengthening its global presence, Arctech’s investment in the Jeddah factory will also have a positive impact on Saudi Arabia’s sustainable economic development. The development of the local PV industry chain will create new employment opportunities and contribute to the country’s long-term growth.
At the recent World Future Energy Summit in Abu Dhabi, Arctech showcased its industry-leading technologies, including the dual-row multi-point drive “SkyWings” tracking system and the off-grid PV-plus-storage BIPV solution. These innovative products highlight Arctech’s commitment to delivering cutting-edge technologies and solutions that promote the development of green energy.
The SkyWings tracking system, featuring a patented bi-directional transmission design, offers enhanced stability, power gains, and cost-effectiveness in challenging terrains and harsh environmental conditions. This technology has already demonstrated its effectiveness in a 1GW Uzbekistan project, reducing installation costs and increasing efficiency.
Arctech’s off-grid PV-plus-storage BIPV solution integrates PV and energy storage systems and can be customized for various scenarios such as offices and residences. With its modular assembly and relocation capabilities, this solution provides a flexible and sustainable energy solution.
Moving forward, Arctech is committed to delivering exceptional products and services to its customers in the Middle East and globally. Through continuous innovation and collaboration, the company aims to contribute to the region’s green energy development and promote a more sustainable future.
SOURCE: Arctech
Arctech’s expansion of overseas production in Saudi Arabia is timely considering the current market trends in the Middle East region. The Middle East has been on a rapid growth trajectory in the field of renewable energy, with countries like Saudi Arabia investing heavily in solar power projects. The region has set ambitious targets to increase its renewable energy capacity, with Saudi Arabia aiming to reach 58.7 GW of renewable energy by 2030.
The decision to establish a factory in Saudi Arabia will enable Arctech to cater to the increasing demand for PV tracking systems in the Middle East market. This move aligns with the growing trend of localization in the renewable energy industry, which allows companies to adapt to local market requirements and reduce logistical costs.
Additionally, the construction of the Jeddah factory will contribute to the local economy by creating new employment opportunities. The development of the local PV industry chain will not only benefit Arctech but also support Saudi Arabia’s long-term economic growth and diversification.
However, this expansion into the Middle East market also presents some key challenges. One challenge is navigating the regulatory landscape and ensuring compliance with local laws and regulations. Companies venturing into new markets must familiarize themselves with the specific requirements and standards of the region, which may differ from those in other countries.
Moreover, competition in the Middle East renewable energy market is increasing as more international and local players enter the industry. Arctech will need to differentiate itself by offering superior and innovative products to stay ahead of the competition.
In terms of controversy, the development of large-scale solar projects in the Middle East has sometimes faced opposition from environmental and human rights groups. Critics argue that these projects can have negative environmental impacts, such as habitat destruction and water scarcity. Arctech must address these concerns by implementing sustainable practices and ensuring proper mitigation measures are in place.
Forecast: The Middle East solar market is expected to continue its rapid growth in the coming years. According to a report by Wood Mackenzie, the region’s installed solar capacity could reach 87 GW by 2025, representing a huge market opportunity for Arctech.
One advantage of the Jeddah factory is its strategic location in Saudi Arabia, one of the largest solar markets in the region. This will enable Arctech to establish a strong presence and forge partnerships with local stakeholders, including government entities and project developers.
As the factory ramps up production, Arctech’s localized supply chain will enhance the resilience and efficiency of its operations. This will enable the company to meet the increasing demand from the Middle East market and ensure timely deliveries, reducing dependence on imports.
Overall, Arctech’s expansion of overseas production in Saudi Arabia signifies a strategic move to capitalize on the growing renewable energy market in the Middle East. With its industry-leading technologies and commitment to sustainability, the company is well-positioned to thrive in this dynamic and promising market.
Suggested related links:
Arctech Solar Official Website
Wood Mackenzie