OCI Invests 1 Trillion Won for Phase 3 Plant Expansion
With an annual capacity of 27,000 tons, OCI will become a global player in the polysilicon industry
Following the completion of its P2 polysilicon plant in July, OCI Company Ltd. announced plans on December 8, 2009 to commence construction of its Phase 3 (P3) polysilicon plant within its existing facility in Gunsan at a total cost of approximately 1 trillion Korean won. The expansion will add 10,000 metric tons of manufacturing capacity, for a total annual manufacturing capacity of 27,000 metric tons. Construction of the P3 plant will begin in January 2010 and be completed by December 2010.
OCI is currently the only company in Korea that has developed and possesses its own polysilicon manufacturing technology. Building upon the 6500 metric ton P1 plant that was completed in December 2007 and the 10,500 metric ton P2 expansion that was completed in July 2009, once the P3 plant is completed, OCI will have a total production capacity of 27,000 metric tons and be one of the major polysilicon producers in the world.
With the P3 expansion, OCI will further enhance its cost competitiveness and become one of the major players in the polysilicon industry, in addition to market leaders such as Hemlock of the United States and Wacker of Germany. Commercial production will begin in 2011, and the expansion will be an opportunity for OCI to increase its presence in the industry.
According to a representative of OCI, "Although the oversupply of polysilicon is expected to continue for the time being, considering the market demand for high efficiency solar cells, customer demand and preference for high purity polysilicon is expected to grow steadily. Moreover, this favorable development for companies manufacturing high purity polysilicon is expected to continue." He added,"OCI is already producing 10-nine grade polysilicon, which is one grade higher than 9-nine purity silicon, and the company's plan is to sell most of the additional product through long-term supply contracts."
In addition, through steady investment, OCI is taking the lead in stimulating the regional economy and creating jobs. The P3 plant is expected to directly generate 500 jobs, and during the construction period the project is expected to have the effect of indirectly creating employment for up to 500,000 people.
Although the board of directors of the company had originally decided during its June 25, 2008 meeting to complete the P3 plant by December 2009, due to the unprecedented global financial crisis and the resulting downturn in the solar industry and oversupply of polysilicon, OCI decided to take active measures to deal with these economic threats and announced on August 12, 2009 that the completion date would be postponed until 2010. However, due to improving market conditions, OCI decided to recommence the project during its board of directors meeting on Tuesday, December 8, 2009.
In particular, due to plans in countries such as Germany, the United States, Japan and China to extend strong support to the solar industry in order to counter the effects of climate change and reduce CO2 emissions, demand has recovered sooner than expected and it is predicted that the industry will grow rapidly after 2010. As a result, to meet this market change OCI now plans to complete the P3 plant by the end of 2010.
Source: OCI
