OCI closing Korean solar grade polysilicon plants on US$636m impairment charge

Facebook
Twitter
LinkedIn
Reddit
Email
PV Tech recently reported that major China-based polysilicon producer, Tongwei Group had ramped capacity to 80,000MT per annum and has guided plans to increase production to 290,000MT in 2023, subject to market demand. Image: Tongwei

Major Korean polysilicon producer, OCI Chemical is to close two solar grade polysilicon plants in Korea as production costs are almost double the current record low ASPs. 

The company had previously reported in its fourth quarter 2019 financial results that it would take a KRW 750.5 billion (US$636 million) asset impairment loss on subsidiaries, notably its solar grade polysilicon plant in Gunsan, Korea, as well as a KRW 10.4 billion loss on polysilicon inventory write down.  

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

OCI has since been reported to have announced plans to close the two solar grade polysilicon plants it operates in Korea, retaining a third that produces electronic grade polysilicon. The company will continue to operate its solar-grade and electronics grade polysilicon plant in Malaysia. 

The key problem for polysilicon producers has been the ramp up of new low-cost polysilicon capacity in China, the main market for the high-purity material. Polysilicon processes remain at record low levels and way below many small-scale producers, including China, which have seen many stop production in 2019. 

Recently, PV Tech reported the financial challenges facing Wacker Chemie, which blamed Chinese government support of its domestic polysilicon producers for the need to make a major write-down of its polysilicon production facilities in Germany and the US with a €750 million impairment charge.

Subsequently, Wacker reported its polysilicon division sunk to a preliminary EBITDA loss of €55 million in 2019 from an EBITDA of €72.4 million in 2018, which in turn had been a 75% decline from 2017.

Media reports in Korea also highlighted that the other Korean polysilicon producer, Hanwha was also considering closing production plants, due to the below production cost polysilicon pricing, dictated by China’s investment in leading-edge low-cost capacity in recent years. The company had recently been cutting production at its polysilicon plant in Yeosu.

PV Tech recently reported that major China-based polysilicon producer, Tongwei Group had ramped capacity to 80,000MT per annum and has guided plans to increase production to 290,000MT in 2023, subject to market demand. 

11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

February 6, 2025
Solar module prices in Europe have risen after months of decline, driven by price increases from Chinese manufacturers and a tight supply of popular modules in the European market.
Premium
February 6, 2025
Donald Trump's latest tariff threats will have only a minimal impact on PV manufacturing but could create future procurement headaches, write Jonathan Touriño Jacobo and Will Norman.
February 6, 2025
Exports of both PV cells and module from China in 2024 reached new highs, according to recently released customs data.
February 3, 2025
The site will produce 3GW of passivated emitter rear contact (PERC) crystalline silicon solar cells by Q3 2025, ES Foundry said in an announcement.
February 3, 2025
US president Donald Trump has brought in new tariffs on China with 10% and Canada with 25%, while Mexico tariffs have been halted for a month.
February 3, 2025
PV Industry figures in India have welcomed government proposals to boost the country’s domestic solar and clean energy manufacturing sector.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 19, 2025
Tokyo, Japan
Solar Media Events
March 11, 2025
Frankfurt, Germany