Conglomerate is working on additional production facility for solar power equipment in China


Hanwha Group’s vertical integration of its solar power businesses is nearing completion as it seeks to take on the growing global market for solar energy and develop the business into a growth engine for the future.

On April 11, Hanwha Chemical Corp.’s board of directors approved the plans to build a polysilicon plant in Yeosu. The plant, which is scheduled to go into full operations in the second half of 2013, will produce 10,000 metric tons of polysilicon on an annual basis, completing vertical integration of Hanwha Group’s solar power equipment businesses. In addition the plant is expected to raise 500 billion won ($437 million) in sales from 2014.

Once Hanwha Chemical begins producing polysilicon, Hanwha Group will have operations in each step required to produce solar panels that goes from polysilicon to silicon ingots to solar cells, which are then assembled into solar panels.

In addition, with the subsidiary Hanwha Solar Energy operating the solar power generation business, the group’s solar power business spans both manufacturing and power generation.

According to the group, however, Hanwha Chemical’s decision to produce polysilicon has further implications.

“By producing polysilicon, which is essential for making solar cells, the group will be able to secure most of the polysilicon it requires from an in-house source from 2014,” a Hanwha Group official said. 

“This also means that the group will be able to gain security against changes in prices as well as price competitiveness.”

Hanwha Group’s solar power business took off in January 2010 when Hanwha Chemical’s plant in Ulsan produced solar cells with combined capacity of 30 million watts. Last August the company acquired Solarfun Power Holdings, the world’s fourth-largest producer of solar cell modules, for 430 billion won.

The company, renamed to Hanwha SolarOne, currently produces silicon ingots and wafers sufficient for 400 megawatts worth of solar cells on an annual basis. In addition, the company plans to more than double its solar cell production capacity to 1.3 gigawatts from the current 500 megawatts and to raise the capacity for solar cell modules to 1.5 gigawatts from 900 megawatts by the end of the year.

The company is also working on an additional production facility in China. The first stage of the project, scheduled for completion at the end of 2012, will give the new facility an annual production capacity of 1 gigawatts in solar cells and modules. The second stage will double the plant’s capacity.

Along with securing production capacity, Hanwha Group companies have also been improving their technological capabilities by acquiring other companies and through their own research facilities.

Since establishing Hanwha SolarOne, the group acquired stakes in two venture companies with related technologies, and established a dedicated research center Hanwha Solar America in Silicon Valley.

By Choi He-suk (cheesuk@heraldcorp.com)