Hanwha Solutions to invest over 760 billion won in local solar energy business

Hanwha's office building in Jung District, central Seoul [NEWS1]

Hanwha Solutions is investing over 760 billion won ($548.9 million) in the local solar energy business, which includes the establishment of a 590-billion-won joint venture with GS Energy.

Hanwha Solutions will set up a joint venture with GS Energy to produce ethylene-vinyl acetate (EVA), a core material for sheets used for solar panels encapsulation, according to the company’s electronic disclosure Wednesday. The joint venture, named H&G Chemical, will be 51 percent owned by Hanwha Solutions and 49 percent by GS Energy.

The two companies plan to invest 590 billion won in total, and build an EVA plant in Yeosu, South Jeolla, with production capacity of 300,000 tons a year. GS Energy will oversee feedstock procurement while Hanwha Solutions provides its production technologies and operation capabilities.

The goal is to begin the operation of the Yeosu plant in September 2025.

Hanwha Solutions will also invest 41.7 billion won to boost the production of EVA sheets at its plant in Eumseong, North Chungcheong, in line with the increase in EVA production volume.

Through the joint project with GS, the EVA production capacity of Hanwha companies including Hanwha Solutions is expected to reach 920,000 tons a year. Exxon Mobil, the world’s largest EVA supplier, produces 790,000 tons a year.

Meanwhile, Hanwha Q Cells, a solar energy division of Hanwha Solutions, will pour 130 billion won into setting up a production line for more efficient solar cells and modules at its factory in Jincheon, North Chungcheong.

Hanwha Solutions on July 28 reported that its renewable energy business logged an operating profit of 35.2 billion won in the April-June period, about 12 percent of the total. That was a turnaround from the same period last year.

The company may invest up to $1.8 billion won to build manufacturing plants for solar panels in the United States, according to media reports in August.

Hanwha Solutions’ shares have been trading strong on the Kospi bourse as of late, as Korean solar energy companies are expected to benefit from tax credits thanks to the recent enactment of the U.S. Inflation Reduction Act. Hanwha Solutions traded at 53,000 won per share on Wednesday, up 51 percent from 35,100 won on July 27.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]