OCI to build P5 polysilicon plant in Saemangeum Industrial Complex

SOUTH KOREA: OCI will invest KRW 1.8 trillion to build facilities on a large scale through an additional polysilicon production plant with production capacity of 24,000 metric tons a year, clearly showing its willingness to make another enormous facility investment for the prior occupation of the high-purity polysilicon market.

OCI announced to construct its P5 polysilicon plant with annual production capacity of 24,000 metric tons in Saemangeum Industrial Complex, North Jeolla. Construction of the facility will be commenced in second half of 2011 and completed by December 2013. A total of KRW 1.8 trillion won will be invested.

With P5 Plant which is the world’s largest single plant in size and produces 24,000 metric tons, OCI will be equipped with a total manufacturing capacity of 86,000 metric tons and cement its reputation as the largest polysilicon supplier in the world.

Upon completion of the P4 Plant construction by the 4th quarter of 2012 to produce 20,000 metric tons per year based on the accumulated technical expertise and improved productivity, OCI expects to gain cost competitive advantage through economies of scale from a total 62,000 metric tons of production capacity. Also the P5 plant construction will lay a strong production foundation to support continuously increasing world demand in the long run.

The construction of P5 plant is the first full-fledged investment in the Saemangeum Industrial Complex under the Memorandum of Understanding (MOU) agreement signed last August between OCI and authorities of North Jeolla Province. Through such investment, OCI can strengthen its cost competitiveness through efficient infrastructure and low-priced energy procured from the co-generation plant.

“To strengthen our market dominance through satisfying the needs of customers, it is timely to drive the expansion of P5 Plant at this moment since the major polysilicon suppliers such as Hemlock and Wacker are targeting 2013 for their aggressive plant expansion deadline,” an OCI official said.

“As the polysilicon market will clearly head towards an oversupply situation, the growing needs of high-efficient solar cells will ultimately lead the insistent demands for high-purity polysilicon products, the core material for high-efficient solar cells manufacturing. Instead of turning to vertical integration, global customers prefer sourcing their polysilicon product supplies from OCI, which is devoting into polysilicon production only instead of relying on vertical integration.”

OCI is supplying super high-purity polysilicon of 10-nine grade and over to about 50 customers worldwide through continuous R&D activities and capital investment. With the further plant expansion, OCI expects to assure stable supply to existing and new customers and, thereby, smoothly respond to the growing demand for high-purity products.