Hoku Materials, Inc., a subsidiary of Hoku Scientific, Inc. (Nasdaq: HOKU), and Tianwei New Energy (Chengdu) Wafer Co., Ltd., a subsidiary of Tianwei New Energy Holdings Co., Ltd., signed a definitive contract for Hoku’s sale and delivery of up to $284 million worth of polysilicon to Tianwei over a ten-year period beginning in early 2010.
This deal, along with a recent $298 million contract with Jiangxi Kinko Energy Co, brings Hoku closer to securing the funds needed to complete its planned polysilicon plant in Idaho.
The latest contract provides for a deposit of $15 million to Hoku in August 2008, and requires that Tianwei make additional deposits for products in the amount of $15 million by November 15, 2008, $10 million by January 15, 2009, and $5 million upon first shipment. Under the agreement, Hoku will grant to Tianwei a security interest in its polysilicon assets to secure Hoku’s obligation to repay $45 million to Tianwei as a credit against product shipments over time.
About Hoku Scientific, Inc.
Hoku Scientific, Inc. is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar provides turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells.
About Tianwei New Energy (Chengdu) Wafer Co., Ltd.
Tianwei New Energy (Chengdu) Wafer Company is a subsidiary of Tianwei New Energy Holdings Co., Ltd. (TWNE), with first class silicon wafer facilities in China’s Sichuan Province. By the first half of 2009, it will have installed wafer capacity of 300 MW, with plans to expand to 600 MW from 2009. Its parent company, TWNE, is also based in Sichuan, China. TWNE owns wafer, photovoltaic (PV) cell and module facilities. By the end of 2008, TWNE will have 100MW of installed PV cell capacity and 60MW of installed PV module capacity, with plans to increase PV cell and module capacity to 300 MW each in 2009. TWNE is a subsidiary of Baoding Tianwei Group Company, Ltd., a leading manufacturer of power transmission equipment and green energy products in China, originally founded in 1958. Baoding Tianwei Group Company, Ltd. has approximately 8,000 employees. For more information visit www.twnesolar.com.
Loading...