Samsung Fine Chemicals (SFC) (004000.KR) and MEMC Electronic Materials, Inc. (NYSE: WFR) announced a joint venture agreement to produce high purity polysilicon–the raw material used in solar cells–in Korea.
Through a 50/50 capital investment, the joint venture will build and operate a new facility on an existing SFC property in Ulsan.
The facility, which is expected to begin production in 2013, will have an initial capacity of 10,000 metric tons (MT) of polysilicon annually, and have the potential to expand to satisfy growing demand over time.
MEMC said the collaboration seeks to provide polysilicon to support growth initiatives as well as minimize business risk by ensuring cost and quality competitiveness. SFC’s core competence is in chlorination processes and high purity purification technology. MEMC is a leader in semiconductor and solar technology.
Commenting on the agreement, Hyun-min Hong, Executive Director of SFC’s Strategic Planning Division, said, "This joint venture signals SFC’s entry into the fast moving renewable energy market and establishes a new engine for long-term growth."
Ken Hannah, President of MEMC Solar Materials, said the company is excited to introduce its polysilicon technology to Korea. "This partnership supports MEMC’s internal growth commitments, and gives us yet another tool to support our customers in the region," he added
SFC is a chemical affiliate of Samsung Group and a producer of electronic materials such as Laser Printer Toner, BT Powder, and Liquid Crystal Polymer, as well as specialty chemicals used for a variety of industries, including pharmaceutical coating materials and construction additives.
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