Oil Report

UPDATE 1-KCC plans $3.8 bln polysilicon plant in S.Korea

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SEOUL, July 3 (Reuters) - KCC 002380.KS, South Korean construction materials maker, will spend 3.9 trillion won ($3.8 billion) building a polysilicon plant in the country and in other related investment.

The company said in a filing to the Korea Exchange on Thursday that it had signed a preliminary contract to build the plant in Chungcheong Province, south of Seoul.

The spending plan includes an initial 320 billion won investment it announced in February to have a polysilicon manufacturing facility, making its foray into the business.

Polysilicon is used for the manufacturing of solar cells and semiconductors.

Late last year, KCC said it raised $1 billion through the issue of zero-coupon exchangeable notes.

Shares in KCC fell 2.8 percent to close at 412,000 won before the disclosure, underperforming the wider market .KS11 which was down 1 percent. ($1=1037.5 Won)

Reporting by Kim Yeon-hee; Editing by Editing by Tomasz Janowski