GCL-Poly, one of the world’s top producers of polysilicon – a key ingredient for solar PV (Photovoltaics) cells – shut a major plant in China after it suffered a series of blasts, according to sources.
The explosion reportedly has taken more than 10% of the global supply of the solar power raw material out of production and may increase costs by 17%.
California-based investment banking group Roth Capital Partners cited reports of four flash explosions at the GCL-Poly Energy Holdings Ltd.’s 48,000 ton/year plant on Sunday followed by a fifth on Monday and suggested overpressure in the rectification and boron removal filter may have led to leakage of trichlorosilane gas, which can react explosively with moisture in the air.
The explosions are reported to have occurred during equipment maintenance at the facility and are said to have taken 50 ton of polysilicon production capacity offline.
An investigation of the incident is understood to be under way and Roth estimated the facility could be offline for 3-6 months “at a minimum,” with the investigation required by the authorities typically taking at least four months to conduct before repair work can begin.
Lower domestic production of polysilicon in the third quarter may boost imports from foreign suppliers like Wacker Chemie AG and OCI Co., Wang Tihu, chief executive officer of Asia Silicon Co. said Tuesday during the same online conference, which was hosted by the China Photovoltaic Industry Association.