The government of the Brazilian state of Pernambuco is in negotiations with producers of solar equipment from China, South Korea, Germany, the US and Spain to establish a manufacturing base in the state and begin production by 2015, local media Canal Energia reports.

The foreign companies involved have not been disclosed, but it is known that China’s ZN Shine has already expressed interest in opening an office in Brazil, without specifying an exact location.

The Pernambuco state contracted 122 MWp at government’s first auction, which was held late December. It requires the solar projects to be supplying electricity by 1 May 2015 for a 20-year term.

The requirement for local production was highlighted by the developers of the solar power projects that took part in the auction.

One such developer was Kroma Energia, which contracted 29.25 MW of solar power.

According to Kroma’s CEO, Rodrigo Mello, after the auction the company initiated talks with both European and Asian firms on equipment supply, as well as possibility of establishing a partnership to build of a solar equipment assembly plant in Pernambuco.

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