Oman Polysilicon Plant Reportedly Faces Six-Month Shutdown

Major Overseas Polysilicon Project Faces Setback

United Solar Holding’s 100,000-ton-per-year polysilicon project in Oman’s Sohar Free Zone is reportedly preparing for a six-month shutdown from October, less than seven months after starting production. The company and Omani authorities have not issued an official statement on the reported shutdown.

The project began operations in February 2026 with an investment of around $1.6 billion, making it one of the largest polysilicon facilities outside China and the first major project of its kind in the Middle East.

High Costs Put Pressure on Operations

The project was designed to supply polysilicon for global markets, particularly the U.S., where Oman’s trade position was expected to provide an advantage under policies targeting Chinese supply chains.

However, production costs have reportedly remained significantly higher than those of leading Chinese producers. Estimated cash costs at the Oman plant are around RMB 33–38/kg, compared with approximately RMB 23–28/kg for leading Chinese producers.

Higher natural gas and electricity costs in Oman have been a major factor behind the cost gap, making it difficult for the project to compete while global polysilicon prices remain under pressure.

Policy Protection Has Not Arrived Fast Enough

The project was built around expectations of stronger demand for non-China polysilicon in the U.S. market. However, those market conditions have taken longer to materialize.

The reported shutdown highlights a broader challenge for overseas polysilicon projects: moving production outside China may address trade and supply-chain requirements, but maintaining competitive production costs remains difficult.

The immediate impact on global polysilicon supply is expected to be limited, but the development could become an important signal for the economics of building alternative polysilicon supply chains outside China.