OCI, Tokuyama Launch $435M Polysilicon Plant in Malaysia

• South Korea's OCI and Japan's Tokuyama launch a $435M polysilicon plant in Malaysia, boosting Southeast Asia's solar supply chain and diversifying global solar-grade material sources.

South Korea's OCI Holdings and Japan's Tokuyama Corp have begun constructing a USD 435 million polysilicon plant in Sarawak, Malaysia, on Borneo island. The facility, developed through their joint venture OCIM Sdn Bhd, will produce 10,000 tonnes of high-purity polysilicon annually, meeting the rising global demand for solar-grade materials. OCI will hold an 85% stake, while Tokuyama retains 15%.

The plant, adjacent to an existing facility, highlights Southeast Asia's growing role in the solar supply chain as countries seek alternatives to Chinese suppliers. Scheduled for completion in 2026, it will enhance Malaysia's solar manufacturing industry and bolster OCI and Tokuyama's positions as leading polysilicon suppliers.

How will the new polysilicon plant impact Southeast Asia's solar supply chain?

• -Diversification of Supply Chain: The new plant will reduce Southeast Asia's reliance on Chinese polysilicon, offering an alternative source for solar-grade materials.
• Boost to Local Economy: The construction and operation of the plant are expected to create jobs and stimulate economic growth in Sarawak, Malaysia.
• Increased Regional Production Capacity: With an annual production of 10,000 tonnes, the plant will significantly increase the region's capacity to supply high-purity polysilicon.
• Strengthening of Malaysia's Solar Industry: The facility will enhance Malaysia's position as a key player in the global solar manufacturing industry.
• Attraction of Further Investments: The plant may attract additional investments in renewable energy infrastructure and technology in Southeast Asia.
• Enhanced Competitiveness: By providing a local source of polysilicon, the plant will help Southeast Asian solar manufacturers become more competitive in the global market.
• Environmental Impact: The plant's operations will likely focus on sustainable practices, contributing to the region's green energy goals.
• Strategic Partnerships: The collaboration between South Korea's OCI Holdings and Japan's Tokuyama Corp may lead to further strategic partnerships in the region.