The Western Australian company holds several patents on its solar technology, including aspects of its manufacturing technology and processes, made available as a Solco Manufacturing System (SMS) through regional licensing agreements.

The Malta facility was completed within budget and ahead of schedule.

It is the second SMS facility in Europe to become operational in the past 18 months following the commissioning of a facility for its licensee in Portugal.

The new plant was commissioned on behalf of licensee MB Solco, a joint venture between Maltese steel fabricator MotherwellBridge and Mauritanian firm Kaylor Rotomoulders, with Solco retaining a 20% interest in the Maltese licensee.

Solco executives said Malta was a promising environment for businesses involved in renewable energy, with the government providing “significant” rebates for energy-saving products such as solar hot water heaters.

The demand for Solco’s solar-based products and similar energy-saving devices is expected to increase as a result of new surcharges for local electricity supply from Maltese energy company Enemalta.

Enemelta manages energy resources for the island of Malta, which is largely dependent on imported fossil fuels and liquid petroleum gas to meet local energy requirements.

In December 2005, the energy company announced that its service surcharge would increase from 17% to 55%, to reflect the cost of its fuel expenses over the previous two months.

Given these conditions, Solco managing director Duncan Stone said the company would retain its stake in the Maltese licensee as it expected to generate significant returns in the region under the local management team.

Solco is a publicly listed company traded on the Australian Stock Exchange. Its shares closed at 26.5% cents on Friday, up 45% for the week.