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Hoku Scientific still on track with polysilicon plant schedule |
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Mar 30, 2007 at 03:32 PM |
 Hoku Materials, a subsidiary of Hoku Scientific, has secured a credit facility of up to $13 million that it said is required to continue with operational expenses related to its polysilicon production facility plans in Idaho. Deposits on polysilicon reactors were cited as one reason for the credit facility. Hoku Materials had planned to manufacture 1,500 metric tons of polysilicon per year but has since raised this to 2,000 metric tons.
"This credit facility from Bank of Hawaii enables us to order our polysilicon reactors in time to meet our planned polysilicon production and customer delivery schedule in early 2009," said Dustin Shindo, Chairman and CEO of Hoku Scientific. "In addition to this $13 million credit facility, we plan to finance the estimated $260 million to construct our polysilicon production facility with customer prepayments and debt. SANYO has already deposited approximately $110 million into an escrow account as a prepayment against our $370 million seven-year polysilicon supply agreement with them. These funds will be released to us in advance as we achieve certain milestones related to the construction of our plant and the production of polysilicon."
Hoku Scientific plans to sell excess polysilicon to the semiconductor and solar industries, while retaining its own supply for solar panel production.
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