Rendered image of OCI Holdings' Vietnamese solar wafer plant (OCI Holdings) |
OCI Holdings, Korea’s sole solar polysilicon producer, has acquired a 65 percent stake in a solar wafer plant in Vietnam, aiming to expand its presence across the solar panel supply chain and capitalize on US restrictions on Chinese solar products.
The company said Monday that its Singapore-based subsidiary OCI ONE purchased a $78 million stake in the plant, which is under construction by Elite Solar Power Wafer Co.
Once completed at the end of October, the plant will have an annual production capacity of 2.7 gigawatts of solar wafers, OCI said.
The wafers, made from OCI’s polysilicon, will be processed into solar cells and assembled into solar panels. OCI Holdings expects the Vietnamese facility to generate immediate revenue, supported by strong demand for nonprohibited foreign entity, or non-PFE, solar components for US projects.
While China accounts for over 80 percent of the global solar supply chain, the PFE restrictions, introduced under the One Big Beautiful Bill in July, disqualify solar panel components linked to certain Chinese or other restricted entities from eligibility for US tax incentives.
OCI Holdings also noted that the new plant offers flexible scalability, with capacity potentially doubling within six months through an additional $40 million investment.
“This strategic investment brings us closer to building a supply chain that facilitates US exports,” said Lee Woo-hyun, chairman of OCI Holdings. “We will continue to strengthen our presence in the global solar market by fostering partnerships with local companies in Southeast Asia.”