Hanwha will also close its polysilicon operations in South Korea

Following fellow manufacturer OCI, Hanwha Solutions/Chemical Corporation has also decided to abandon its solar-grade polysilicon business in South Korea. At the presentation of its fourth quarter results on February 20, Hanwha announced the “discontinuation of the business within a year.”

Hanwha Solutions/Chemical was formed by the merger of Hanwha Chemical, Hanwha Q Cells and Hanwha Advanced Materials in January 2020. The company’s polysilicon plant in Yeosu, South Jeolla province started commercial production in 2014 and has a capacity of 15,000 metric tons. Its residual value was impaired, leading to a net loss of KRW249 billion (US$209 million) for Hanwha in 2019.

On February 11, OCI announced the shutdown of its solar-grade polysilicon operations in Gunsan under the weight of high industrial electricity rates in South Korea and the pressure from low-cost polysilicon plants in western China.

According to Korean press reports, Hanwha’s polysilicon plant made annual losses of KRW50-80 billion ($42-67 million) although the company reduced the utilization rate in 2019. Hanwha said that the sales price is only about half of its production costs.