OCI shelves poly-plant expansion
South Korea’s OCI has delayed a 116.5bn won ($103.8m) plan to expand its domestic polysilicon production capacity due to uncertain business conditions.
The company said in a filing to the Korean stock exchange that it will indefinitely postpone plans to add 10,000 tonnes of capacity to its factory in the city of Gunsan.
An OCI spokesperson in Seoul told Recharge that it made the decision because it “does not believe the supply/demand situation has stabilised yet”.
OCI is one of the world’s biggest suppliers of the solar raw material to the PV industry.
Last month the Chinese government announced preliminary anti-dumping duties on polysilicon made in South Korea and the US.
However, Korean companies – and particularly OCI – ended up facing much lower duties, partly due to last-minute diplomatic efforts by Korean President Park Geun-hye.
In April OCI suffered a blow when struggling Chinese PV group Suntech – one of its biggest customers – cancelled three orders worth $1.3bn between them.