OCI has decided to sell most of the 400MW Alamo power plant share, located in San Antonio, Texas, USA. They are trying to focus on expanding their main business, solar battery based poly silicon business. Also lowering the investment in power plant will help them solve their debt problem.
OCI is disposing 70% of currently operating class 1~4 100㎿ power plant share. Furthermore, they are also planning to dispose rest of their under construction 300㎿ power plants as soon as they’re complete, accordingly on 29th.
OCI Alamo project is project constructing 400MW level solar power plants on 16.5㎢ space(about 1600 soccer field size), which started in 2013 and scheduled to be completed by next year. The power plants would be able to supply electricity to 70,000 households in San Antonio. OCI expected to make over 2.5 billion USD worth sales in 25 years of operation.
Applying the profit rate 5~9% that the OCI had expected, they would make 200 billion USD worth net profit. However, the reason OCI decided to dispose their share is to reduce the debt risk and focus more on expanding their main polysilicon business clients and fields.
Total of 1.2 billion USD was invested in the Alamo project. Considering debt OCI has (about 2.4 billion USD), including 128% debt ratio, the project was concluded burdensome.
OCI needed steady income source like increasing demanding of polysilicon rather than to risk building Alamo solar power plant for long term project. They showed their determination in not wasting their effort with debt ration on their back and also to focus on their main business, which is supplying polysilicon.
OCI related official said, “We have disposed most of our plants that are done with construction. We are planning to dispose the under construction plant shares as well when completed. Because the interest rate is low in US, Pension Fund and other investors are highly interested in purchasing share of solar power plant.”
Staff Reporter Ham, Bonggyun | hbkone@etnews.com