OCI Holdings Posts 77.7 Billion KRW Operating Loss in Q2, Swings to Deficit

Uncertainty in Tariff Policies Peaks in Q2
Anti-Dumping and Countervailing Duties in Four Southeast Asian Countries
IRA Amendments Add to the Challenge

OCI Holdings announced on the 24th that, on a consolidated basis, its second-quarter sales amounted to 776.2 billion KRW, a decrease of 18.3% compared to the same period last year. The company recorded an operating loss of 77.7 billion KRW and a net loss of 76.2 billion KRW, turning to a deficit.

An OCI Holdings representative explained, "The uncertainty surrounding U.S. tariff policies has reached its peak due to anti-dumping and countervailing duties (AD·CVD) in four Southeast Asian countries, reciprocal tariffs by country, and the recently amended Inflation Reduction Act (IRA) through the 'One Big Beautiful Bill Act (OBBBA).' The contraction in demand from customers of OCI TerraSus, our Malaysian subsidiary that produces polysilicon for solar power, was a major factor contributing to the operating loss."

OCI TerraSus plans to review the operation of its production lines in line with the gradual recovery of the global market within the third quarter. The company will focus on inventory sales and working capital management to strategically respond to external uncertainty risks.

To respond to ongoing external uncertainties, OCI Holdings is diversifying its business portfolio into high value-added advanced materials sectors such as semiconductors and secondary batteries. In the first half of 2026, OCI Kumho is scheduled to begin production of epichlorohydrin (ECH), which is used for secondary battery coatings and wind turbine blades. OCI TerraSus will generate new revenue by producing chlor-alkali (CA), a raw material for ECH that is also used for etching and cleaning in semiconductors and secondary batteries.

On the 17th, OCI Holdings announced the establishment of a joint venture, OTSM (OCI Tokuyama Semiconductor Materials), with Japanese chemical specialist Tokuyama. The companies will invest a total of 435 million USD (about 600 billion KRW), aiming to complete construction and trial operations in the first half of 2027. After obtaining customer approval (PCN), they plan to supply 8,000 tons of semiconductor-grade polysilicon annually to the global market starting in 2029.

Lee Woo-hyun, Chairman of OCI Holdings, stated, "With the enactment of the OBBBA, some uncertainties in the U.S. solar business have been resolved, such as the continued maintenance of the Advanced Manufacturing Production Credit (AMPC)." He added, "With the introduction of new provisions such as Foreign Entities of Concern (FEOC) and Prohibited Foreign Entities (PFE), companies like OCI Holdings, which manufacture U.S.-made solar cells and build solar power plants as part of a non-Chinese solar value chain, will find new opportunities."

This content was produced with the assistance of AI translation services.