Jan 5 2010
Hoku Materials and Shanghai Alex New Energy announced the amendment of the polysilicon supply agreement between the two companies. Hoku Materials, a subsidiary unit of Hoku Scientific, is engaged in manufacturing and selling polysilicon for the solar market. Shanghai Alex New Energy manufactures solar modules, photovoltaic products and crystalline silicon solar cells in China.
The first shipment of polysilicon by Hoku to Shanghai Alex New Energy will be postponed from the first quarter to the third quarter of the year 2010 based on the terms of the amendment. Changes have not been made for other terms in the amendment related to contract duration, shipment volumes and pricing.
Lian Wen Zhang, President of Shanghai Alex New Energy, remarked that the company is satisfied with this amendment as it supplies both the companies with appropriate benefits and highlights the committed partnership between Hoku and Shanghai Alex New Energy.
Hoku is currently preparing for a reactor test demonstration in the first quarter of the year 2010. After the test demonstration, the company is planning for an initial production capacity of about 2,500 metric tons of polysilicon every year. This reactor test demonstration was postponed because of the closing of the transaction with Tianwei New Energy.
The first production phase will be completed with the usage of third-party trichlorosilane (TCS). Initial quantities of trichlorosilane has already been bought and delivered to the company’s Pocatello facility. This change in time will enable the company to provide sufficient quantity of polysilicon for satisfying the existing contractual delivery obligations of the company.
Hoku expects to continue its addition of reactor capacity throughout the year 2010 till the plant achieves its total annual production of 4,000 metric tons in the second half of the year 2010. By the end of the year 2010, Hoku intends to bring its on-site TCS production facility online, which is expected to remove the company’s requirement for third-party process chemicals.