Hanwha Plans $955 Million Polysilicon Plant in South Korea

April 11 (Bloomberg) -- Hanwha Chemical Corp., the third-best performer in South Korea’s Kospi 200 index in the past year, plans to spend 1.04 trillion won ($955 million) on a polysilicon plant to help more than double sales within five years.

The plant will be able to produce 10,000 metric tons a year of polysilicon, used in solar cells, when construction is completed by July 2013, the Seoul-based company said in a regulatory filing today.

The shares rose to a record as Hanwha bet orders for solar-power equipment will gain as governments take steps to cut carbon emissions blamed for global warming. In 2010, the chemicals maker bought almost half of Solarfun Power Holdings Co., the world’s fourth-largest maker of solar components.

The proposed polysilicon plant in Yeosu will generate more than 500 billion won of sales in 2014, Hanwha said in an e-mailed statement today.

The company aims to increase overall sales to 4.2 trillion won this year and to 9 trillion won in 2015, compared with 3.6 trillion won in 2010, according to its website.

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

The shares rose 0.8 percent to a record 48,700 won at 1:45 p.m. local time, compared with the 0.4 percent decline in the Kospi Index.

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