The company said Friday that the new plant will initially produce 5,000 tons of solar-grade silicon per year, and it will be integrated with an existing silicon plant run by Orkla's metal subsidiary Elkem at Kristiansand on Norway's south coast.

"The factory will lay the foundations for the development of a new high technology business area for Orkla with considerable potential for expansion," Orkla said in a statement.

"Ordinary deliveries of Elkem Solar Silicon are scheduled to start in mid-2008," Orkla said.