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South Korea's DC Plans Big Polysilicon Expansion

July 7, 2008 | A version of this story appeared in Volume 86, Issue 27

South Korean chemical producer DC Chemical will spend almost $1.1 billion to build new facilities that will produce polysilicon for the solar industry. The company is an emerging polysilicon player that opened its first such plant only six months ago. It will spend $840 million to build a third solar polysilicon plant, with a capacity of 10,000 metric tons per year, by the end of 2009. The firm is also spending $250 million to boost capacity at its first plant by 30% to 6,500 metric tons and to cover cost overruns at its second facility, now under construction and due to come on-line in June 2009. With a total capacity of 26,500 metric tons, DC expects that these projects will turn it into the world's second-largest producer of polysilicon. Financing for the projects comes from cash flow and customers' early payments on their long-term supply agreements. The world's largest producer of highly pure polysilicon today is the U.S. firm Hemlock Semiconductor, followed by Norway's REC.

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