RUSNANO to allocate 1.5B RUR for polysilicon production

RUSNANO to allocate 1.5B RUR for polysilicon productionThe Board of Directors of Rusnano, JSC decided to allocate 1.5B RUR as additional funding for the investment project to create Russia's first large-scale complex for polycrystalline silicon production in Irkutsk Region being implemented by Nitol Group, Rusnano reports.

The project experiences a number of significant commercial difficulties that did not allow it to implement product sales as planned due to difficult market conditions (drop in world prices for polysilicon from $300 to $16 per kilogram). Additional funding for the project will be provided by shareholders and the state in the period till 2015 in accordance with the Russian government instructions to protect and promote domestic production of polysilicon.

Shareholders’ funds will be used to complete major facilities (nitrogen-oxygen plant and a power station) and reach the production capacity of 1,8K tons of polysilicon per year in 2016 - the statement says.

Polycrystalline silicon (polysilicon) is the main semiconductor material used in modern microelectronics and power electronics, solar energy, micromechanics. Almost 90% of all solar cells in the world are based on polycrystalline silicon.

Rusnano owns 58.75%, and Sberbank 41.25% in Sherigo Resources Limited Company (British Virgin Islands, controlled by Nitol).