[Market Focus] OCI Holdings Rises on Expectations for Industry Improvement as China Implements Strong Solar Sector Restructuring to Curb Oversupply

OCI Holdings is showing strong performance. This appears to be influenced by news that the Chinese government is initiating structural reforms to curb excessive expansion competition in the solar power industry.

As of 9:22 a.m. on May 14, OCI Holdings was trading at 80,400 won, up 8.8% from the previous day. The previous day, the stock also closed up 7.88%.

According to industry sources, the National Development and Reform Commission (NDRC) of China recently announced plans to reduce subsidies provided to local solar companies. While the official reason is that the share of clean energy in China’s total power generation has reached 40%, the underlying motive is interpreted as an effort to stabilize the market, which has deteriorated due to expansion competition.

In particular, the Trump administration’s imposition of additional tariffs on Chinese products has led to a sharp decline in the volume of Chinese products entering the United States, resulting in worsening profitability.

Meanwhile, OCI Holdings’ Malaysian subsidiary, OCI Terrasus, currently operates a polysilicon production plant with an annual capacity of 35,000 tons. The company plans to increase production to 56,600 tons by 2027. In addition, it is planning to expand its cell factory in Texas, United States, to a scale of 2 gigawatts (GW).