China’s Sungrow picks Poland for first European factory

Chinese solar inverter provider Sungrow has announced plans to build a manufacturing facility in Poland.

The 65,400 m² facility represents an investment of €230 million and will be located in Wałbrzych, Lower Silesia.

The facility, which is due to be operational within the next 12 months, is designed for an annual capacity of up to 20GW for inverters and 12.5 GWh for energy storage systems.

Shawn Shi, President of Sungrow Europe, says this is an important milestone for the company in the region, adding: “It allows us to be closer to our customers, respond more effectively to market needs, and will be a cornerstone of Sungrow’s strategy to bolster European supply-chain stability while creating skilled employment.”

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According to Sungrow, the facility will help strengthen its logistics capabilities across Europe, reduce lead times and enable more efficient distribution – ultimately boosting the resilience of the supply chain.  

Poland’s strategic position

While Sungrow operates across Europe, having been active on the continent since 2005, the company selected Poland as it’s location of choice, more specifically, Lower Silesia.

Shi said: “Lower Silesia’s history of skilled technical expertise in electronics, automation and advanced manufacturing made it the prime location for our new factory. We intend to hire locally to tap into this expertise, as we live our commitment to grow with the communities we serve.”

Marcin Lerner, President of the Management Board of the Wałbrzych Special Economic Zone, believes the region is building an ecosystem that fosters development and international business.

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He also suggests this ecosystem extends beyond the border of the economic zone to the rest of the country.

 Lerner said: “The Sungrow investment highlights Poland’s growing strategic importance within Europe’s clean-energy value stream and shows that Poland, including the industrialized and high-tech developed region of Lower Silesia, is one of the most attractive locations in Europe to scale renewable energy technologies- thanks to public support programs, stable economic growth, accessibility to technical universities and qualified employees.”

As one of the top ten emitters of coal mine methane globally, the country continues to be under enormous pressure to decarbonise. However, according to Polish think tank Forum Energi, despite legislative barriers, coal generation is falling to record lows and the role of renewable energy sources is growing, with their share in electricity generation now reaching 29.4%.

China’s eye on Europe

Europe’s established renewable markets and ambitious clean energy goals make it a popular destination for Chinese technology companies.

A report released in by KPMG, highlighted what it referred to as a “green storm” of factors, that make the European market profitable. These include Nationally Determined Contributions driving renewable energy uptake, policies designed to boost domestic production while decreasing supply chain emissions, as well as grid upgrade requirements

In recent years, Europe’s push for localisation has increased, a factor that will drive more Chinese companies to consider relocating manufacturing to the region, states KPMG.