OCI Holdings Co., South Korea’s premier chemical and green energy firm, has announced a strategic $1.5 billion investment in Malaysia to escalate its polysilicon production used in solar panels and to venture into semiconductor materials. The plan includes a $850 million commitment by 2027 to increase the output of its Malaysian subsidiary, OCIM Sdn. Bhd., from 35,000 to 56,000 tons annually.
This expansion is propelled by the U.S. sanctions on Chinese polysilicon, stemming from human rights concerns, which has shifted demand towards other providers like OCIM. By leveraging Malaysia’s investment incentives, including a decade-long corporate tax exemption and subsidized electricity costs, OCIM has successfully carved out a profitable niche, outperforming its low-cost Chinese competitors.
OCI’s initiative aligns with its sustainable manufacturing ethos, utilizing hydroelectric power to attract global partners seeking eco-friendly production methods. This move is likely to strengthen Malaysia’s position as a key player in the global green technology landscape, fostering significant economic and environmental benefits.
