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OCI signs MOU with Hanwha Solutions for Long-Term Supply of Poly-Si Worth KRW 1.45 Trillion

OCI signs MOU with Hanwha Solutions for Long-Term Supply of Poly-Si Worth KRW 1.45 Trillion

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OCI, the leading global solar PV supplier, signs an MOU with Hanwha Solutions for the long-term Poly-Si supply, further consolidating its position as a global Poly-Si business.

OCIM Sdn. Bhd. (OCIMSB), a Malaysian subsidiary of OCI, announced on April 28 that it would sign the binding MOU with Hanwha Solutions for the long-term supply of Poly-Si for solar PV manufacturing, worth USD 1.2 billion (KRW 1.45 trillion) for 10 years from July 2024 to June 2034. This amount corresponds to about 45% of OCI’s annual sales in 2021 on a consolidated basis.

This MOU is significant as it is the first polysilicon transaction between the leading domestic solar PV players. OCIMSB produces 35,000mts of Poly-Si a year (as of the end of June 2022) for low-carbon solar PV using hydroelectric power generation in Malaysia. This MOU with Hanwha Solutions reaffirmed the supply capacity of OCIMSB, which focuses on Poly-Si production for high-efficiency monocrystalline silicon wafers.

With this MOU, OCIMSB is able to secure an additional stable buyer of Poly-Si for PV. Hanwha Solutions, targeting the low-carbon footprint solar module market, which is expected to significantly expand in the United States and Europe, can secure a stable supply of low-carbon Poly-Si.

While many Poly-Si manufacturers rely on coal for power generation, OCIMSB produces Poly-Si through eco-friendly hydroelectric power generation in Malaysia. This will give OCI, as a leading company in renewable energy, a leading edge that will draw customers’ continued attention.

Thanks to the escalating global focus on ESG and support policies of countries, the solar PV market is anticipated to grow more than 15% year by year, with OCI concentrating on solidifying its PV business capability and boosting production efficiency. OCI plans to increase the production capacity of OCIMSB from 30,000mts to 35,000mts by the end of June this year through debottlenecking and utilize most of the machinery from its Gunsan plant to enhance production efficiency and reduce investment costs. Furthermore, OCI is now on its way to strengthening its green chemical business, announcing the expansion of its production capacity for chlor-alkali (CA), a raw material of ECH, by 100,000mts following a joint venture with Kumho P&B Chemicals in Malaysia to produce ECH, an epoxy raw material.

“I am extremely pleased to enter into a MOU with Hanwha Solutions, Korea’s representative global solar PV business, for the long-term supply of Poly-Si. With the soaring demand for renewable energy, OCIMSB’s high-purity Poly-Si sales are on the rise,” said Lee Woo Hyun, OCI Vice Chairman. “With this MOU, we will actively explore the market to respond to the steadily growing demand for solar PV,” he added. (End)

Source : oci

Anand Gupta Editor - EQ Int'l Media Network