OCI to acquire 16.5% stake in Tokuyama Malaysia for US$24m

[THE INVESTOR] Energy and chemical company OCI announced on Sept. 28 that it will acquire 16.5 percent stake in Tokuyama Malaysia to strengthen its solar panel business.

It will take over 50 million shares of the manufacturer of polysilicon, a material used in solar panels, next month for US$24 million. 

Polysilicons produced by OCI

Although it will not participate in the management right away, the South Korean company is reviewing taking over the entire stake of the Malaysia-based firm that is wholly owned by Japanese chemical heavyweight Tokuyama.

Established in 2009, Tokuyama Malaysia can manufacture 20,000 tons of polysilicon a year, but has been facing difficulties due to the fall in prices.

OCI is the third largest global manufacturer of the material, with the capacity of 52,000 tons a year.

By Hwang You-mee (glamazon@heraldcorp.com)