Hanwha Chemical Considers Building Polysilicon Plant to Tap Solar Demand

Hanwha Chemical Corp., the fourth- best performer in South Korea’s Kospi 200 index during the past year, is considering building a polysilicon plant in South Korea as it pursues a goal of more than doubling sales.

Constructing the plant in South Korea may make it easier to operate and staff, and open new customer bases, Kwon Hyuk Bum, a Hanwha spokesman, said by phone today. He was responding to a Korea Economic Daily report that the plant may be built in the U.S. or Canada to gain from lower power costs.

Hanwha is among South Korean companies betting orders for solar-power equipment will rise as governments take steps to cut carbon emissions blamed for global warming. Hanwha acquired almost half of Solarfun Power Holdings Co., a Chinese maker of solar components, in 2010. Polysilicon is a material used in solar cells.

Chief Executive Hong Ki Joon aims to increase sales to 4.2 trillion won ($3.8 billion) this year, and to 9 trillion won in 2015, compared with 3.6 trillion won in 2010.

Hanwha has more than tripled in Seoul trading in the past year, trailing only Korea Kumho Petrochemical Co., Honam Petrochemical Corp. and KP Chemical Corp. among Kospi 200 Index (KOSPI2) members.

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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