Hoku Scientific Inc. and Solarfun Power Hong Kong Ltd. have signed a definitive contract for Hoku's sale and delivery of polysilicon to Solarfun over an eight-year period beginning in mid 2009.
Under the contract, up to approximately $306 million may be payable to Hoku during the eight-year period, subject to product deliveries and other conditions. The contract provides for the delivery of predetermined volumes of polysilicon each year, with the first shipment in the second half of 2009 and continuing over an eight-year period from the first shipment, at set prices that will decline throughout the term of the agreement.
‘Hoku has built a solid reputation as a leader among the new entrants in the polysilicon field, and we are extremely confident in their ability to meet our long-term polysilicon requirements,’ says Lu Yonghua, Solarfun's chairman.
Hoku is in the process of building a polysilicon plant in Pocatello, Idaho, that is being designed for annual production up to approximately 2,500 metric tons of polysilicon. The company is also planning a Phase II expansion of the polysilicon plant to expand capacity beyond 2,500 metric tons.