Tokuyama to Build Polycrystalline Silicon Plant in Sarawak, Malaysia

Tokyo, Nov 28, 2008 - (JCN) - Tokuyama Corporation announced plans on Nov. 27 to build its second polycrystalline silicon manufacturing base at the Samalaju Industrial Park in Sarawak, Malaysia, aimed at expanding Tokuyama's polycrystalline silicon business.

In its FY2008 - 2010 Medium-Term Management Plan, Tokuyama has classified polycrystalline silicon as a material for strategic growth. The company is actively strengthening this business, planning to increase the annual production capacity of the facilities in the Tokuyama Factory (Shunan City, Yamaguchi) from the current 5,200 tons to 8,200 tons in the spring of 2009.

Demand for polycrystalline silicon is expanding rapidly with its applications in solar cells and so on, and Tokuyama is receiving many orders from customers. At present, the Tokuyama Factory is the company's only manufacturing base for polycrystalline silicon, and thus the construction of a second polycrystalline silicon manufacturing base is urgent from the viewpoint of the dispersion of risk as well.

In April this year, Tokuyama launched a project to select a site for a second manufacturing base for polycrystalline silicon. Sites both in Japan and overseas were studied, and it was decided that the optimal site is coastal land of about 200 hectares in the Samalaju Industrial Park, which is located 50 kilometers northeast of central Bintulu, Sarawak, Malaysia.

Tokuyama will start drafting the basic design for a second polycrystalline silicon manufacturing base at this industrial park. The basic design is scheduled to be completed by the middle of 2009 and will be created through a partnering agreement with Chiyoda Corporation.

The manufacture of polycrystalline silicon is electricity intensive and requires industrial water, labor and other resources. Such resources are available at the Samalaju Industrial Park in Sarawak. In addition, this industrial park was selected because of the advantages it offers, including preferential tax treatment and support for acquisition of federal and state government permits and licenses.

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