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OCI Shelves Its Polysilicon Capacity Expansion Plan

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Thursday, August 22nd, 2013
SEOUL, KOREA- OCI Company has postponed a plan to build new polysilicon production lines in its Gunsan plant, ostensibly due to the ongoing downturn in the solar power market. Polysilicon, or polycrystalline silicon, is a material consisting of small silicon crystals, the basic building block of photovoltaic solar cells.
 
The company said this on August 21 in a regulatory filing and that it would delay the investment until it sees signs of recovery in the photovoltaic solar industry. The company had planned to invest 116.5 billion won to expand facilities capable of producing 10,000 tons of polysilicon materials. A company official said, "Our decision is based on the current conditions of the industry to fine-tune the timing of capacity expansion. We will set out to invest more only after the current market price for polysilicon goes up a little bit."
 
According to PV Insights, a China-based market research firm, the average selling price for polysilicon has been US$16.82 for the January-July period this year, down 56.71 percent from $26.36 for the same period last year. Earlier in May, OCI had postponed indefinitely its plans to invest 3.4 trillion won to build a fourth and fifth plants.
 

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