KUALA LUMPUR: Japan-based Tokuyama will sell its polysilicon factory in Malaysia to South Korea-based OCI for US$98 million, with the transaction to be finished by March 31, 2017, according to industry sources.
The factory has annual production capacity of 20,000 tons of polysilicon. Tokuyama will recognize a capital loss of about JPY8 billion (US$79.5 million) from the sale in its fiscal fourth-quarter 2016 (April 2016-March 2017).
Tokuyama, in order to expand production of polysilicon used to make semiconductor-grade and solar-grade crystalline silicon wafers, established a subsidiary, Tokuyama Malaysia, in 2009 and began to construct the factory in 2011. However, the factory suffered operating losses of JPY74.8 billion in fiscal 2014 and JPY123.4 billion in fiscal 2015 due to drastically decreased demand for polysilicon.
Exports of polysilicon produced by OCI in South Korea to China is subject to combined anti-dumping and anti-subsidization tariffs of about 3% currently, but polysilicon produced at the factory will be exempt from taxation.
