OCI's Malaysian unit wins USD-841m polysilicon contract from Longi

Polysilicon. Source: OCI Co Ltd

February 11 (Renewables Now) - South Korean energy and chemicals company OCI Co Ltd (KRX:010060) announced that its unit in Malaysia has won a KRW-930-billion (USD 841m/EUR 693m) polysilicon supply contract from Chinese solar products maker Longi Green Energy Technology Co Ltd.

The contract secured by OCIM Sdn Bbn (OCIMSB) has a term of three years, until February 2024, and accounts for some 35% of the firm’s 2019 sales on a consolidated basis, OCI said in a statement.

The Korean company recently announced it will expand its annual production capacity in Malaysia by 5,000 tonnes to 35,000 tonnes by the second half of 2022. It will do so through debottlenecking.

OCI explained it wants to improve the efficiency of its factories and cut investment costs by utilising part of idle facilities in Gunsan. By doing so, it will lower the polysilicon production cost by about 15% compared with the average level in 2020.

(KRW 1,000 = USD 0.904/EUR 0.745)

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