Dow Corning, a subsidiary of Dow Chemical Co., and Corning Inc, has agreed to buy Mitsubishi’s stake in two solar polysilicon manufacturing ventures for a total of $240 million.
The two ventures are part of the Hemlock Semiconductor group, with Dow Corning’s purchase giving the company a 12.5% stake in Hemlock Semiconductor LLC, and complete ownership of the venture, plus an 80.5% ownership in Hemlock Semiconductore Corp.
Japan’s Mitsubishi, meanwhile, has decided to part ways with Hemlock, with Dow Corning filling the gap they have vacated.
Hemlock is a group of joint ventures that is partly owned by Shin-Etsu Handotai Co., a Tokyo-based company present in the manufacturing of raw materials used in the production of solar panels.
While Shin-Etsu Handotai will remain a minority shareholder in the two Hemlock ventures, Dow Corning stated that it views this investment as an opportunity to generate additional earnings and increase its cash flow.