Hoku Materials Inc. and Jiangxi Kinko Energy Co. Ltd., a manufacturer of silicon ingots, wafers and related products in China, have signed a definitive contract for Hoku's sale and delivery of solar-grade polysilicon to Kinko Energy over a 10-year period beginning in late 2009.
According to the contract, up to approximately $298 million may be payable to Hoku during the 10-year period, subject to product deliveries and other conditions. The take-or-pay contract provides for the delivery of predetermined volumes of polysilicon each year, with the first shipment in the second half of 2009 and the remainder over a 10-year period at set prices that will decline throughout the term of the agreement.
SOURCE: Hoku Materials
