Semiconductor and Electronics Giant Samsung is entering into production of polysilicon setting up a 10,000 ton plant in an equal JV with US Poly Producer MEMC.The plant will be set up in South Korea and will go onstream by 2013 as it takes around 2 years to set up a plant.Note Samsung had recently started production solar crystalline silicon solar panels which uses polysilicon as raw material.Samsung has a strategy for manufacturing crucial raw materials inhouse for its different product lines.For example Samsung has a multi billion dollar JV with Corning to manufacture LCD glass in South Korea and a JV to make wafers for semiconductors with Wacker.It uses the expertise and technology of its JV partners to get into raw material production.The JV partners get a huge customer for their products and are happy to go along with Samsung in these Joint Ventures.
The Trend of State Government Individual Companies Partnering in Renewable Energy Manufacturing to generate Green Jobs is increasing in the last year.Individual provincial governments in Canada,China and South Korea have recently signed deals with major Renewable Energy Companies to set up Manufacturing Plants in their respective provinces.The government gives various incentives such as land,tax breaks,assured markets,cheap loans in return for huge green investments from the companies.This gives a strong boost to the provinces which are fighting it out with other provinces for Green Dollars.While the process may not be exactly democratic and lead to an ideal selection,it does lead to faster implementation and guaranteed jobs in an increasingly tepid global economy.The latest province to join the bandwagon in a major way is Hebei province in China which has tied up with Chinese Wind Turbine Producer Ming Yang Power.Note other Chinese provinces have also tied up with Chinese Renewable Companies to increase Alternative Energy Investments in their regions.
The South Korean government is the most aggressive administration when it comes to establishing a Green Economy of the future.The Koreans have established the biggest Green Stimulus as a percentage and are following it up with massive investment in different parts of the Green Economy.Korean Chaebols LG,Hyundai,Samsung,Daewoo,Posco,SK Energy,Hanwha have taken the cue from their home country in charting out an ambitious roadmap in solar,wind,green vehicles.Hyundai has ramped up investment in the Solar Energy sector tying up with Glass Giant Saint Gobain,while LG and Samsung are going it alone putting up facilities to produce crystalline solar panels.Hanwha has bought a big Chinese solar panel producer while Daewoo is setting up WTF facilities.
Siemens has planned to increase its Environmental Revenues to Euro 40 Billions by 2014 which is quite a big jump considering the large base.GE is its biggest competitor which is also rapidly increasing investment and research into Renewable Energy.Areva,ABB,Samsung,LG,Hyundai,Toshiba,Sharp,Panasonic,Mitsubishi are other industrial giants looking to rapidly increase revenue from Clean Technology.Siemens has a definite technological and incumbent advantages however the competition is quite formidable.Siemens has made important wins recently in the field of high speed railways,new generation high voltage DC electricity transmission,offshore wind etc.But it lacks size and scale in the fields of nuclear and solar energy and has little presence in the area of Energy Storage as well.While Siemens has bought Soliel in the Solar Thermal field,it lacks a Solar PV product portfolio.Siemens however remains a good long term safe green investment in a volatile cleantech sector.
South Korea has said that it would reduce its dependence on China for rare earth minerals.The Country has reduced imports of Rare Earth Minerals from 7398 tons in 2005 to 2655 tons in 2009.Note most of the reduction came after South Korean Chaebols Samsung and LG shifted their production from CRTs to LCD and Plasma Display Panels.The country now imports 65% of its REE requirements from China and most of the rest from Japan.The country plans to increase cooperation with traditional ally USA and Japan to meet future demand for these commodities.However I have my doubt whether South Korea can reduce its dependence.South Korea has embarked on a major Green Stimulus which is the biggest as a percentage amongst Developed Countries.This is going to mean increased demand for rare earth minerals which are essential for Magnets in Wind Turbines and Batteries and Catalytic Converters for Electric Vehicles.Japan is already planning huge investments into developing alternate supply sources,perhaps South Korea needs to show that urgency as well