Tokuyama expands polysilicon production in Japan and Malaysia

Tokuyama Corporation will expand polycrystalline silicon production capacity at its Shunan City (Yamaguchi, Japan) location, and build an additional polySi plant in Sarawak, Malaysia. Tokuyama’s goal is to raise its global share of polysilicon for solar PV cells, while maintaining its share of polysilicon for semiconductors.

May 13, 2011 — Tokuyama Corporation will expand polycrystalline silicon production capacity at its Shunan City (Yamaguchi, Japan) location, and build an additional polySi plant in Sarawak, Malaysia.

Tokuyama’s present goal is to raise its current global share of polycrystalline silicon for solar cells, which is estimated to be about 5%, to 10% or more while maintaining its current global share of polycrystalline silicon for semiconductors of 20% or more.

Tokuyama Corporation has decided that it will expand its production capacity for polycrystalline silicon by adding a new plant and implementing debottlenecking steps in the Tokuyama Factory (Shunan City, Yamaguchi Prefecture).

When construction is completed, the annual polycrystalline silicon capacity of the Tokuyama Factory will increase by 1,800 tons to 11,000 tons.

Investing approximately ¥11 billion, the construction will start in November 2011 at the Higashi Plant, Tokuyama Factory after the procedures regarding our plan are authorized by government and municipal offices, and its completion is scheduled for spring 2013.

Tokuyama will conduct a second-phase construction project to build an additional polycrystalline silicon plant at the Samalaju Industrial Park in Sarawak, Malaysia. The second-phase plant will produce polycrystalline silicon for solar cells at an annual production capacity of 13,800 tons.

Outline of second-phase plant in Samalaju Industrial Park, Sarawak, Malaysia

Annual production capacity: 13,800 tons
Plant construction costs: Approx. ¥100 billion
Production method: Siemens method
Target usage of polycrystalline silicon: Solar cells
Construction plan: Commence construction in April 2012 and aim to start operations in January 2015.

The plant construction costs are estimated to be approximately ¥100 billion. The construction is scheduled to commence in April 2012, and Tokuyama aims to start operation in January 2015. Tokuyama Malaysia Sdn. Bhd. will acquire property, plant and equipment related to this project. The decision has no effect on Tokuyama’s performance for the current fiscal year ending March 31, 2012.

When the construction of the second-phase project is completed, the total annual production capacity of Tokuyama Malaysia Sdn. Bhd., Tokuyama’s wholly owned subsidiary, will be 20,000 tons in Malaysia, combined with capacity of the plant under construction.

Although there is fear that globally surging polycrystalline silicon production may adversely affect a balance between supply and demand, demand for polycrystalline silicon is expected to remain on a steady growth path.
Tokuyama will further strengthen its cost competitiveness by the production capacity increase mentioned above as well as the construction of the second manufacturing base in Malaysia.

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