UPDATE 1-S.Korea's DC Chem wins $675 mln polysilicon order

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SEOUL, July 10 (Reuters) - DC Chemical Co Ltd (010060.KS) racked up a 671.3 billion won ($674.9 million) polysilicon order from Taiwan's Eversol Corp, the South Korean company said on Thursday, pushing its shares up nearly 13 percent.

The latest order comes on the heels of a 833.2 billion won ($808.5 million) polysilicon contract from Green Energy Technology Inc (3519.TW), Taiwan's biggest solar wafer maker, earlier this week.

Supply for the two orders will start in January 2010 and end in December 2016, DC Chemical said in filings to the Korea Exchange.

The company is one of the world's major polysilicon producers along with Hemlock Semiconductor, a joint venture owned by Dow Chemical Co (DOW.N) and Corning Inc (GLW.N), and German chemicals group Wacker Chemie (WCHG.DE).

Polysilicon is used for computer chips and converting sunlight into electricity inside solar cells.

DC Chemical plans to spend 1.14 trillion won to expand its two polysilicon plants and build a new factory between mid-2008 and end-2009, funded by prepayment by contractors and reserved money, the company said late last month.

The planned expansion will lift its annual capacity to 26,500 tonnes, making the company the world's second-biggest polysilicon maker.

Polysilicon production worldwide is expected to triple in the next three years, easing a shortage that has plagued makers of photovoltaic systems.

DC Chemical, which produces basic chemical and petrochemical products, said in June that it would focus on its polysilicon business, which is expected to grow by more than 30 percent per year. Its output expansion is expected to help bring down solar energy prices and boost demand from Europe and Asia in particular, it added.

Shares of DC Chemical soared 7.9 percent to 301,500 won by 0229 GMT, after spiking up to 314,500 won, outperforming the wider market's 0.5 percent drop.

(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)