OCI to Supply Polysilicon Worth 1.45 Trillion Won to Hanwha Solutions

Lee Woo-hyun, Vice Chairman of OCI

[Asia Economy Reporter Oh Hyung-gil] OCI announced on the 28th that it has signed a memorandum of understanding (MOU) for a 10-year long-term polysilicon supply contract worth 1.45 trillion KRW with Hanwha Solutions.

OCI's Malaysian subsidiary, 'OCIMSB,' signed an MOU to supply polysilicon for solar power worth 1.2 billion USD, approximately 1.45 trillion KRW, to Hanwha Solutions from July 2024 to June 2034. This amount corresponds to 45% of OCI's consolidated sales last year.

OCIMSB produces about 35,000 tons annually of low-carbon polysilicon for solar power through eco-friendly hydropower in Malaysia. Through this MOU, OCIMSB, which mainly produces high-efficiency mono wafer polysilicon, has been recognized domestically and internationally for its supply capacity.

In particular, Hanwha Solutions, targeting the low-carbon footprint (Low CFP) solar module market expected to grow rapidly in the US and Europe, will be able to stably receive low-carbon polysilicon supply.

OCI is focusing on strengthening its solar power business capabilities and production efficiency. Through process improvements at OCIMSB, production capacity will be expanded from the current 30,000 tons to 35,000 tons by the end of next month, and most machinery and equipment are being optimized and investment costs reduced by utilizing facilities at the Gunsan plant.

Additionally, OCI plans a joint venture with Kumho P&B Chemicals in Malaysia for ECH (epichlorohydrin), a material for epoxy, and independently plans to expand CA (chlor-alkali), the raw material for ECH, by 100,000 tons.

Lee Woo-hyun, Vice Chairman of OCI, said, "We are very pleased to sign an MOU for a long-term polysilicon supply contract with Hanwha Solutions, a world-leading solar company representing Korea," adding, "We will continue to actively develop sales channels and respond to the continuously growing solar market."