Dow Corning Corp. agreed to pay $240 million to buy Mitsubishi Materials Corp. (5711)’s stakes in two solar polysilicon manufacturing joint ventures that are part of the Hemlock Semiconductor group.
Dow Corning acquires Mitsubishi’s 12.5 percent stake in Hemlock Semiconductor LLC, giving it complete ownership of the venture, and the Japanese company’s 12.5 percent in Hemlock Semiconductor Corp., giving it 80.5 percent ownership, Midland, Michigan-based Dow Corning said today in an e-mailed statement.
Mitsubishi is exiting Hemlock, a group of joint ventures also partly owned by Tokyo-based Shin-Etsu Handotai Co. Dow Corning said bigger stakes in the ventures, which make the main raw material used in the manufacture of solar panels, will help it generate additional earnings and cash flow.
Shin-Etsu Handotai remains a minority shareholder in two of the ventures, Hemlock Semiconductor Corp. and Hemlock Semiconductor PTE Ltd. Dow Corning said it will purchase Mitsubishi’s 12.5 percent stake in the latter venture in the coming weeks.
Dow Corning, a manufacturer of silicon-based products, is owned by Dow Chemical Co. and Corning Inc.