OCI closing Korean solar quality polysilicon plants on US$ 636m problems cost

Feb 12, 2020 03:04 PM ET
  • Significant Korean polysilicon manufacturer, OCI Chemical is to shut 2 solar quality polysilicon plants in Korea as manufacturing expense are nearly dual the present record low ASPs.
OCI closing Korean solar quality polysilicon plants on US$ 636m problems cost
Image: Tongwei

The firm had actually formerly reported in its 4th quarter 2019 monetary outcomes that it would certainly take a KRW 750.5 billion (US$ 636 million) possession problems loss on subsidiaries, especially its solar quality polysilicon plant in Gunsan, Korea, along with KRW 10.4 billion loss on polysilicon stock make a note of.

OCI has actually considering that been reported to have actually revealed strategies to shut both solar quality polysilicon plants it runs in Korea, keeping a 3rd that creates digital quality polysilicon. The firm will certainly remain to run its solar-grade and also electronic devices quality polysilicon plant in Malaysia.

The essential issue for polysilicon manufacturers has actually been the ramp of brand-new low-priced polysilicon ability in China, the major market for the high-purity product. Polysilicon procedure stay at record low degrees and also method listed below several small manufacturers, consisting of China, which have actually seen several quit manufacturing in 2019.

Lately, PV Tech reported the economic difficulties encountering Wacker Chemie, criticized the Chinese federal government assistance of its residential polysilicon manufacturers for the demand to make a significant write-down of its polysilicon manufacturing centers in Germany as well as the United States with a EUR750 million disability cost.

Ultimately, Wacker reported its polysilicon department sunk to an initial EBITDA loss of EUR55 million in 2019, a 24% decrease from an EBITDA of EUR72.4 million in 2018, which subsequently had actually been a 75% decrease from 2017.

Media records in Korea likewise highlighted that the various other Korean polysilicon manufacturer, Hanwha was likewise thinking about shutting manufacturing plants, because of the listed below manufacturing expense polysilicon prices, determined by China's financial investment in groundbreaking affordable ability over the last few years. The firm had actually just recently been reducing manufacturing at its polysilicon plant in Yeosu.

PV Tech just recently reported that significant China-based polysilicon manufacturer, Tongwei Group had actually ramped capability to 80,000 MT per year and also has actually directed strategies to raise manufacturing to 290,000 MT in 2023, based on market need.

Solar Installers, Manufacturers