Groaning Solar Industry
The photovoltaic industry is losing its appeal with the international oil price plummeting to about US$40 per barrel, which is approximately half of the minimum price at which economic feasibility can be ensured for the sector.
Under the circumstances, OCI is beefing up its coal chemical business, as the decline in oil prices is dragging down that of polysilicon. It is planning to increase its coal tar processing capacity in cooperation with Chinese companies. It set up Ma Steel-OCI Chemical with the Maanshan Iron & Steel Group on Dec. 20 last year to raise the annual capacity by 350,000 tons to 1.18 million tons. The idea is to pursue stable profits instead of investing in uncertainties.
Hanwha Q Cells, in the meantime, is going to shut down its cell and module manufacturing facilities in Germany on March 1. Its plan is to carry out production activities only in Malaysia, where labor costs and rents are relatively lower, while having just 350 research engineers in Germany. Also, Hanwha Q Cells is scheduled to be merged with Hanwha Solar One, the other photovoltaic subsidiary of the Hanwha Group.
SK Innovation, which purchased 47.9 percent of HelioVolt with SK TIC at a cost of US$76 million, is going to dispose of the thin film solar cell manufacturer and get out of the business. It recently tried to sell the firm, but failed due to the immaturity of the market and the oil price movement.
Samsung SDI decides on the continuation of its solar cell R&D late this month. It has been engaged in the activities since May 2011 but has come up with no significant outcome.
Samsung Fine Chemicals reduced its shares in SMP, an American polysilicon joint venture, from 50 percent to 15 percent in May last year. The industry is paying close attention to whether the ratio will be further lowered. Samsung Fine Chemicals explained that no further cut is scheduled for now, with Sun Edison having asked to maintain the 15 percent level.