International giants to expand polysilicon production capacity of Chinese enterprises worrying

From $500 / kg to $100 / kg, a sharp decline in the spot price of polysilicon seems to challenge the Shanghai Composite Index fell. Fortunately, despite the decline in prices, but the demand for solar energy polysilicon industry continues to grow, especially the dual pressures of energy and the environment so that the industry optimistic about the long-term prospects for the development of solar energy industry. Therefore, the international giants of the polysilicon industry is still expanding production capacity, while the new competitors are also constantly trying to get a share of this profiteering industry. Capacity expansion momentum is flourishing in December 2008, the world's largest polysilicon producer - the United States Hemlock announced plans to invest $1 billion 200 million in Tennessee to build polysilicon plant plans. According to the plan, Hemlock new plant in Tennessee, the initial production capacity of 13 thousand tons / year, the future will be able to increase production capacity to 21 thousand tons / year, while the total investment will be increased to $2 billion 500 million. At the same time, the company will invest $1 billion in the plant in Michigan,, which will be the plant's production capacity increased from 19 thousand tons per year to $2, 000 tons per year. The main competitors of Hemlock company of German Wacker chemical Limited by Share Ltd also announced expansion plans. In March this year, the president and CEO of RudolfStaudigl said in an interview, as of the end of 2008, Wacker polysilicon production capacity has reached 15 thousand tons / year; in the German state of Isaacson agribusiness uchtritz production base, Wacker will invest 760 million euros to build a new production equipment, the annual production capacity of 10 thousand tons; in addition, Wacker also 100 million euros will increase investment, expand production base for Berg house is building a "8 stage expansion of the production capacity, the annual production capacity of 7000 tons from the original plan increased to 10 thousand tons, by the end of 2010 will reach full capacity planning. Then, Wacker sijicon business unit's annual production capacity will be increased to 35 thousand tons. At present, the global production of polysilicon materials is dominated by 7 large companies, in addition to Hemlock and Wacker, also includes the United States MEMC, Norway REC, Japan MITSUBISHI, Sumitomo titanium and mt.. It is expected that in 2009 the 7 companies of polysilicon production accounted for about 70% of global output, if the sales revenue, the company's sales revenue will be more than 7 of global sales revenue of more than 80%. According to the company's expansion plans, by 2010, the total production capacity of 7 polysilicon giants will reach 126 thousand tons / year. Investment in the United States from the United States to build the line of choice from the global polysilicon giant site, the United States has become a paradise for polysilicon production. The Hemlock company announced its less than two months after Tennessee's investment plan, Wacker also announced that it will invest $1 billion in the U.S. state of Tennessee construction of a new ultra pure polysilicon production base. The president and CEO of RudolfStaudigl said that the construction of the base, the rapid development of production capacity will enable to Wacker outside the euro area according to the market demand and expand. In fact, the 7 largest polysilicon materials operated by the polysilicon plant is currently located in the United States, half of the 10. If the production capacity, the 10 plants, the United States in the factory accounted for more than 60% of the share. Why is America so attractive to polysilicon manufacturers? Luoyang Silicon High Tech Co., Ltd. chief engineer Yan Dazhou said that the United States is the key factor in low electricity prices. It is understood that, if the use of the current mainstream of improved SIEMENS method, in polysilicon production, the total cost of electricity consumption of 40%-50%, the price of electricity has become a key factor in determining the cost of polysilicon. Yan Dazhou also said that the level of automation of polysilicon production is very high, very few people need, so the United States higher labor costs have little impact on the overall cost. In addition, the United States government preferential tax policy is also an important reason to attract international giants to invest. Domestic investment more rational investment witnessed the international giants of the competition, Chinese companies are also eager to become China especially in solar cell manufacturing country, Chinese polysilicon industry investment heat has also surged. According to statistics, in 2008 China's total output of polysilicon is about 4000 tons; however, from the domestic enterprise production plan, in 2009 the national production capacity will reach 42 thousand tons. Although the domestic enterprises can achieve the full capacity of the program is still an unknown, but even without considering the rapid expansion of Chinese enterprises, global demand for polysilicon has begun to change. The impact of the international financial crisis, the spot price of polysilicon from the second half of last year to accelerate the decline, is close to $500 / kg fell to $100 / kg, is expected in 2010 after the polysilicon supply will start more than demand. Industry experts believe that the current polysilicon prices have not bottomed out, the future will continue to decline in space. The direct victims of price collapse will be China's polysilicon production enterprises. Compared with the international giants, China's production technology is not yet mature, production and operation experience is not enough, the energy consumption per unit output is relatively high. In particular, can not form a closed loop production enterprises, not only a large consumption of raw materials, but also to invest more funds for environmental protection. Solar photovoltaic (Suzhou) Co., Ltd. vice president Li Bencheng said in an interview: "once the polysilicon prices continue to fall, the foreign enterprise's competitive advantage will be more obvious. This is the objective law of the market economy." Visible, as a new force, China's solar grade polysilicon industry will face fierce competition in its nascent stage. Investment in domestic construction