Comtec Solar Systems sees its future outside mainland China

The mainland has created the world's biggest solar panel and parts manufacturing industry as well as the world's biggest solar panel market from scratch in less than a decade, thanks to government support.

But to Comtec Solar Systems Group's chief executive John Zhang Yi, remaining small and nimble and staying clear of the crowded mainland market served by low-end products are key to the parts maker's long-term survival.

Amid worsening overseas trade protectionism, it has even chosen a strategy to gradually move its production away from eastern China to Malaysia, making it the only mainland solar parts manufacturer in the Southeast Asian nation.

"In order to secure the long-term stability of our business, we will invest in new facilities in Malaysia and not on the mainland," Zhang told the South China Morning Post. "We also want to move our mainland facilities to Malaysia as much as possible.

"The United States is highly likely to impose further trade barriers aimed at Chinese producers this year, we can't just sit here and hope that it won't happen."

He said Comtec had been exporting to its American panel-producer customer SunPower's Malaysian plant for some time.

"We have been considering producing in Malaysia for over a year because we have a major customer there, but now our main consideration for moving there is to avoid trade barriers in our main markets," he added.