OCI Holdings has no plan to build polysilicon plant in U.S.

Lee Woo-hyun, chairman of OCI Holdings [Courtesy of OCI Holdings]

South Korea’s Co. said it has no plans to invest in the U.S. to produce polysilicon for photovoltaics as it’s more profitable to do so in Malaysia than in the U.S. even though the latter provides subsidies under the Inflation Reduction Act (IRA).

“The IRA subsidy alone would not cover the cost of building a new factory in the U.S. and when we factor in the cost, expanding the Malaysia plant is half of building a factory in the U.S.,” Lee Woo-hyun, who officially took over as chairman of OCI Holdings on Tuesday, told Maeil Business Newspaper.

Polysilicon for solar power is eligible for a $3 per kilogram subsidy through the Advanced Manufacturing Production Credit (AMPC), which applies to clean energy technology components produced in the U.S. and sold after calendar year 2022, but he pointed out that the construction cost of a local plant in the U.S. is 2 to 2.5 times more expensive than in South Korea.

OCI Holdings held the official launch and Lee’s inauguration ceremony at the same time at its headquarters in Seoul.

Lee also promised to lead the holding company with a focus on talent, ensuring that the company will be led by people who are capable and competent, regardless of seniority.

“Since this is the first time we are operating as a holding company, we need to establish a necessary system by the end of this year,” Lee said.

Lee plans to make OCI Holdings an agile organization, with a streamlined decision-making process and a horizontal organizational culture to ensure that the company can respond quickly to market dynamics.