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01/29/2009 11:24 AM
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KMA, Hyundai Heavy Ink $600M Silicon Deal
SustainableBusiness.com News
Korea Advanced Materials (KMA) yesterday announced a US$600 million plysilicon supply deal with Hyundai Heavy Industries Co. (HYHZF.PK), according to reports.
KMA is a joint venture between Hyundai Heavy and South Korean paint maker KCC Corp. (002380.KS)
KMA will supply polysilicon--the raw material used to make solar cells--to Hyundai Heavy from 2010 to 2015.
Hyundai Heavy also has a deal to buy US$508 million worth of polysilicon from 2001 to 2015 from Woongjin Polysilicon, a unit of Woongjin Holdings Co. (016880.KS)
Hyundai Heavy, which is best known as a large ship builder, is in the process of vertically integrating it's solar business. The company expects to complete construction of a solar cell manufacturing plant in 2010.
The company has an ongoing wafer supply contract with LDK Solar (NYSE: LDK). In 2005 Hyundai Heavy commissioned a solar module assembly line from Spire (Nasdaq: SPIR) to produce 150,000 solar modules annually.
Hyundai Heavy said last spring it expects sales of solar cells and modules to reach about $960 million by 2010.
