February 13, 2008 -- KCC Corp. (KSE:002380), a South Korean chemicals producer, said Wednesday that it plans to spend 320 billion won (US$339 million) to build a plant for producing polysilicon, an essential raw material in the production of solar cells for panels that convert sunlight into electricity.

The company said the capital spending will begin this month through July 2010, and the plant, if completed, will produce 3,000 tons of polysilicons annually.

Shares of KCC closed at 450,000 won, up 8.43 per cent, on Seoul's bourse.

Meanwhile, KCC said it plans to set up a polysilicon-related joint venture with Hyundai Heavy Industries Co. (KSE:009540), the world's largest shipbuilder.

But the company did not elaborate on details of the joint venture, including the size of its investment.

Hyundai Heavy is building its second factory for churning out solar modules and solar cells. In 2006, the shipbuilder set up a plant which produces 150,000 solar modules annually.

Earlier in the day, KCC said it inked a deal with U.S.-based Solar Power Industries, Inc. to supply 92.5 billion won (US$97.8 million) worth of polysilicons by December 2013.

Source: Asia Pulse