Samsung Fine Agress With MEMC to Set Up Polysilicon Plant in South Korea

Samsung Fine Chemicals Co. agreed with MEMC Electronic Materials Inc., a U.S.-based maker of silicon wafers, to set up an equally owned venture for a polysilicon plant in South Korea.

The two companies will build the facility on an existing Samsung Fine Chemicals property in Ulsan, according to an e- mailed statement issued jointly.

The plant, which is expected to start operating in 2013, will have an initial capacity of 10,000 metric tons annually, according to the statement. The cost of the facility wasn’t disclosed.

Samsung Fine Chemicals will invest about 200 billion won ($179 million) in the venture, it said today in a separate regulatory filing.

Samsung Fine Chemicals shares rose as much as 4.1 percent to 81,000 won and were trading at 78,000 won as at 10:53 a.m. local time.

-- With assistance from Bomi Lim and Sungwoo Park. Editors: Baldave Singh, Jane, Ching Shen Lee

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.