Uni-chem to buy closed Hynix facility

A SOUTH Korean company will sign a formal contract with Hynix Semiconductor Inc to buy a plant the memory chip maker closed in the United States, an official said yesterday.

Uni-chem Co will take over Hynix's memory chip plant and the accompanying land in Eugene, Oregon, for US$45 million, Uni-chem Chairman Lee Ho-chan said before heading to the US to sign the deal tomorrow.

The sale price is below the US$50 million the two sides signed in a memorandum of understanding in August and far below the US$252 million Hynix spent to buy the land and build the factory shell a decade ago.

Uni-chem, which provides leather to South Korea's Hyundai Motor Co and its affiliate Kia Motors Corp as well as to luxury goods companies Burberry and Coach, has sought to jump into US solar manufacturing.

Lee has said Uni-chem plans to use the facility to make solar cells as part of the company's new business.

Uni-chem acquired a 51 percent share of Spire Solar System, a subsidiary of solar power company Spire Corp, and set up Uni-chem Solar in the US state of New Hampshire, according to Lee.

Hynix spokesman Park Hyun said negotiations were ongoing.

Hynix said it stopped operating the Oregon plant in September 2008 due to lack of profitability.

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