SHS Global, Solar film manufacturing factory in Vietnam
- Writer: Gia Định Group at
Invest $400 million... Agreement with Gia Dinh Group in Vietnam
Chairman of SHS Global Shin Heung-shik (right) and Chairman of Gia Dinh Group Nguyen Chi Trung (left) take a commemorative photo at the business cooperation signing ceremony [provided by SHS Global]
SHS Global (Chairman Shin Heung-sik), a domestic investment and trading company, signed a memorandum of cooperation with Vietnam's Gia Dinh Group (Chairman Nguyen Chi Trung) to build a solar film factory' in Vietnam on the 6th. Through that, SHS Global plans to build a manufacturing plant in Vietnam. With this agreement, SHS Global is responsible for capital investment, finance, equipment selection, supply and export of POE raw materials, and Gia Dinh Vietnam Group is responsible for capital investment, rental supply land, approve operating permits, build locally, and sell locally produced products. SHS Global is the official overseas sales cooperation partner for POE products, a high value-added synthetic plastic produced by LG Chem and the main raw material for solar film, copper Currently expanding its business model into the field of solar energy materials business that can create added value based on a stable source of raw materials. - Operational target in the second half of 2025, producing the first 5GW (*Photovoltic Encapsulant) solar membrane... Expanding business to 50GW by 2030 - Taking Vietnamese business as a bridgehead, continue to expand solar power business to Southeast Asia such as Cambodia and the US market. Shin Heung-shik, Chairman of SHS Global, met with Gia Dinh Group Chairman Nguyen Chi Trung at Gia Dinh Group headquarters in Ho Chi Minh, Vietnam on July 6 and signed a memorandum of understanding ( MOU). Chairman Shin said: "This project is to produce solar film (protective film for Solar panels) in Vietnam, which is an important material to maintain the durability and power generation efficiency of the modules. -solar power generation, which will be an important base in global solar energy production" First, the two companies will invest $40 million (about 52 billion won) and operate a solar film factory with an annual capacity of 5GW by the second half of 2025. SHS also plans to open expand its business to 50GW on a cumulative basis by 2030. This collaborative project is meant to diversify the global solar supply chain market, which is more than 80% concentrated in China. In addition, SHS Global said this is a project related to President Yoon Seok-yeol's state visit to Vietnam last month, and is meaningful in strengthening the cooperative relationship between Korea. and Vietnam. CEO Mr. Yoo Tae-seok said: "SHS Global is a promising enterprise that can continuously expand as a strategically affiliated enterprise with a promising partner in Vietnam, taking advantage of the opportunity stable supply of raw materials". electricity supply chains for the global market." - Excellent durability and power generation performance SHS Global is a global business cooperation partner for LG Chem's high value-added synthetic plastic resin products POE (Polyolefin Elastomer). SHS Global is expanding its business to the mid-range sector (solar module manufacturing) of the solar value chain based on this as well as cooperating in selling LG Chem's POE products in foreign markets. The POE market for solar module membranes is expected to grow by more than 30% annually by 2025. Gia Dinh Group is doing business in the field of solar power generation construction in Vietnam. Is an enterprise that produces global shoe brands such as Nike and Adidas and develops investment business in the Real Estate sector in Vietnam. As a Vietnamese company is actively cooperating with Korea, such as signing a Memorandum of Understanding with Korean SEP group in April 2023 to create a 'Carbon neutral industrial complex in Binh province Duong Viet Nam' is worth about 200 million USD. The solar film production material that the two companies invested in is a film that seals and protects solar cells. It is considered an essential material that determines the durability and performance of solar modules.
The global solar film market is growing at an average annual rate of 13% or more. Currently, the first to third largest companies in the global solar POE film production market are all concentrated in China, and the company in the No. 1 position accounts for 50% of the solar packaging equipment market. global solar output. Previously, EVA (Ethylene Vinyl Acetate) was used as the main raw material, but recently, the use of POE, an environmentally friendly high value-added material, is increasing. POE is attracting attention as a new material for solar energy and is a synthetic resin with properties of rubber and plastic. POE has an advantage in ensuring power generation efficiency compared to EVA, which is used as a solar film and has characteristics such as high efficiency in blocking moisture. With high elasticity and superior impact resistance. According to Nexant, a global petrochemical consulting company, the POE market is expected to grow 6.9% annually from 2020 to 2030. The market size is expected to reach $6.3 billion dollars (about 8.4 trillion won). Meanwhile, large corporations are also jumping into the POE market to expand their business of high-value-added materials in the future. As the photovoltaic market expands mainly in the US and Europe, the petrochemical industry is focusing on materials for photovoltaic modules such as POE (Polyolfin Elastoer). LG Chem is investing in the expansion of its POE manufacturing plant with an annual capacity of 100,000 tons from 2021 for POE products, and the expansion is expected to be completed by the end of 2023. After the opening When the expansion is completed, LG Chem is known to have the second largest POE production capacity in the world with 380,000 tons per year.
POE plastic products, raw materials for producing energy films solar panels manufactured by LG Chem
Hanwha Solutions and Hanwha Total Energy recently completed a POE pilot plant and plan to build a plant capable of producing 100,000 tons per year in the future after trial production. SK Geocentric, which currently has a capacity of 210,000 tons, is investing in Saudi Arabia's petrochemical company SABIC to increase its POE capacity to 300,000 tons by 2024. An official in the chemical industry said: “In the case of solar-related materials, it is certain that chemical companies looking for future products will pay attention to these companies because they are business field with high added value".