Tokuyama Corporation is expanding its production capacity for polycrystalline silicon, a main growth driver for the Company, by adding a new plant, and implementing debottlenecking steps in the Tokuyama Factory, Yamaguchi Prefecture. The annual polycrystalline silicon capacity of the Tokuyama Factory will increase by 1,800 tons to 11,000 tons.

Investing approximately 11 billion yen, the construction will start in November 2011 at the Higashi Plant, Tokuyama Factory after the procedures regarding the plan are authorized by government and municipal offices, and its completion is scheduled for spring 2013.

Although there is fear that globally surging polycrystalline silicon production may adversely affect a balance between supply and demand, demand for polycrystalline silicon is expected to remain on a steady growth path. Tokuyama will further strengthen its cost competitiveness by the production capacity increase and the construction of a second manufacturing base in Malaysia.