Hoku Scientific Inc. (Nasdaq: HOKU) shares jumped after it announced a second important polysilicon supply agreement, this time with Germany-based Solar-Fabrik AG (SFX.DE).
The seven year, $185 million contract is with Solar-Fabrik’s Global Expertise Wafer Division.
It comes on the heels of a 10-year, $678 million deal with China-based Suntech Power Holdings Co. Ltd. (NYSE: STP) Both contracts begin in 2009. The company now has contracts to supply polysilicon worth $1.2 billion over the next ten years.
Hoku reported $5.4 million in revenue for the fiscal year ended March 31.
Hoku plans to increase the capacity of a polysilicon plant it is building in Idaho to 3,000 metric tons of polysilicon per year, up from its previous goal of 2,000 metric tons.
The company still has about 500 metric tons of capacity available, and will likely sign another similar contract this year.
Hoku shares rose 15.8% ($1.10) on the news.
It looks like Hoku is shifting out of the solar manufacturing business – Hoku Solar plans to resell the 15 MW a year solar module production line that it agreed to purchase from Spire Corp. for $2 million. It is canceling plans to install the line in Hawaii, and its construction of a 30 MW solar modules plant in Pocatello, Idaho.
Hoku also plans to resell the $2.8 million of solar cells it purchased from E-Ton Solar Tech Co., Ltd. in 2006, which may result in a a significant loss.
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