Hanwha Group enters Polysilicon business
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Complete vertical integration in solar business to be established by building a 10,000MT capacity factory
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Will lead global solar companies with global network encompassing manufacturing, power generation and R&D
Hanwha Group has decided to enter Polysilicon business. This decision will enable Hanwha to complete its vertical integration from Polysilicon to solar power generation in the solar business, the group’s next growth engine.
Hanwha Chemical Corporation (HCC) held a board meeting in Seoul in which the decision to construct a Polysilicon production facility was made.
After a period of preparation, HCC will begin construction of the facility in the first quarter of 2012 in the Yeosu Industrial Complex. Operation will begin second half of 2013. HCC is expecting sales of 50 million won annually. Total investment of the facility will be approximately 100 million won.
This investment is a follow-up of the group’s decision that in order to realize economy of scale and secure independent competitiveness in the Polysilicon area, starting domestic Polysilicon manufacturing facility is strategically required.
HCC has accumulated experiences in optimizing manufacturing process from many years of petrochemical plant operation. In addition, the company will contribute to the expansion of domestic investment and creation of employment opportunities.
Investment on Polysilicon will strengthen Hanwha’s solar business by completing a vertical integration from Polysilion, Ingot, Wafer, PV cell to module in the PV value chain.
An independent manufacturing facility for Polysilicon, a core material for PV cell, will supply most of the internal Polysilicon demand for production. This will help Hanwha to secure stability and cost competitiveness at a time of economic turbulence.
From the completion of vertical integration in the upstream part, the manufacturing area of solar industry, Hanwha gained strength to expand its solar business to the downstream part to achieve a complete vertical integration. The result was the foundation of “Hanwha SolarEnergy”, an affiliate company for solar power generation.
The acquisition of Solarfun Power Holdings last August, and renaming it to Hanwha SolarOne enabled Hanwha to obtain a concrete stepping stone to become one of the largest PV manufacturers in the world, as well as in Korea. Hanwha SolarOne is ranked 4th in the world, in module production.
Hanwha SolarOne is currently producing ingot and wafer of 400MW respectively. 500MW and 900MW facilities of PV cell and module will be expanded to 1.3GW and 1.5GW respectively. In addition, a 2GW PV cell and module manufacturing facility will be built in two phases in China’s Nantong Economic and Technological Development Area. In the first phase, 1GW will be completed by the end of 2012.
Last March, Hanwha Group established the solar R&D center, Hanwha Solar America, in the Silicon Valley. This completed a solar R&D network encompassing Korea, China, and America.
Hanwha will strategically widen its solar power generation business spectrum into North America and Europe with its solar cell manufacturing and R&D network in Korea, China and America to become a global PV leader in the world
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