South Korea Could Become Second Largest Polysilicon Producer by 2013

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--South Korea has the potential to become the second largest producer of polysilicon by 2013. This climb is being pushed by a growing demand for solar power in East Asia, particularly in South Korea itself. In 2009, the government launched a series of multibillion-dollar green growth initiatives aimed at stimulating the economy while simultaneously cutting greenhouse gas emissions by at least 30% by 2020.

Between last year and this year, South Korea's polysilicon capacity jumped approximately 100%, and is expected to surpass Germany's capacity this year, placing just behind the United States. One the largest projects completed this year is a $1 billion processing plant owned and operated by Woongjin Polysilicon Company Limited, a subsidiary of Woongjin Holdings Company Limited (SEO:016880) (Seoul). The plant boosted South Korea's capacity by 15,000 tons per year and Woongjin plans to expand by 2013.

By 2013, however South Korea is expected to be second only to China, whose production capacity could exceed 160,000 tons per year. Aside from Woongjin, several other South Korean firms, including Hankook Silicon Company Limited (Seoul), OCI Company Limited (Seoul) and Hanwha Chemical Corporation (SEO:009830) (Seoul), are boosting their polysilicon production capacities between now and 2013. South Korea is expected to have an annual production capacity of about 98,000 tons by that time, a 162% rise from this year's capacity.

Other countries in East Asia are also raising their domestic polysilicon capacities, though much more slowly as in the case of Japan. Japan Solar Silicon Company Limited and Osaka Titanium Technologies Company Limited (TYO:5726) (Osaka) are both in the midst of boosting production. The dynamic within Japan could change, however as the country's energy strategy adjusts to the nuclear crisis and incorporates more renewable energies, such as solar power. The Great East Japan Earthquake Disaster could encourage more companies to expand overseas production. A fair number of Japanese firms, such as polysilicon maker Tokuyama Corporation (TYO:4043) (Tokyo), have already begun overseas expansion due to domestic market conditions.

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