Dubai’s MBM Holdings plans to construct a $400m solar-grade polysilicon plant in the UAE.

The 2,500 tonnes-a-year (t/y) plant will be built in joint venture with Singapore’s ERC Private. It will produce high quality solar-grade polysilicon and will be built on a 250,000 square metre site at an as yet to be decided location.

In a statement MBM Holdings said that the feasibility study has been completed and the plant will be operational by early 2012. The company also said that negotiations are taking place for with the Dubai authorities for land and power allocations.

“The project will be the first of its kind in the Middle East to produce polysilicon as it utilises ERC’s existing designs that will shave off at least 18 months from a typical project lead-time,” the statement said.

A new company, MBM Solar Holding, has been formed to execute the project.