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.