Bloomberg News

LG Chem May Delay Polysilicon Investment as Prices Plummet

October 26, 2011

(Updates with comment from company in second paragraph.)

Oct. 26 (Bloomberg) --LG Chem Ltd., South Korea’s biggest chemicals maker, is considering delaying plans to build its first polysilicon plant amid falling prices for the raw material used in solar panels.

The company is assessing alternatives, including the delay, to “reflect changes in the business environment and demand” for polysilicon, the Seoul-based company said in a filing today to the Korea Exchange.

The average selling price of polysilicon has dropped 19 percent since the start of the month, Bloomberg New Energy Finance data shows. The spot price fell 9.1 percent last week at the fastest rate since June, as subsidy cuts reduced demand for solar panels in Europe, the world’s biggest market. At the same time, manufacturers ramped up production capacity.

LG Chem Chief Executive Officer Kim Bahn Suk told investors in Seoul on April 19 the company was preparing to move into the polysilicon market. In a June 2 filing, the Korean company announced a plan to spend 491 billion won ($434 million) on the plant with an output capacity of 5,000 metric tons a year when construction is completed by the end of 2013.

--Editors: Baldave Singh, John Chacko

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus