Hoku: Supply Contract From Evonik Degussa
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Corporation, established to manufacture and sell polysilicon for the solar market, announced the signing of a supply agreement with Evonik Degussa Corporation for the purchase of trichlorosilane (TCS), a key process chemical used in the manufacturing of polysilicon. Hoku plans to use the TCS supplied by Evonik, together with TCS from other potential suppliers, to support the first phase of commercial production at its polysilicon facility in Pocatello, Idaho.
According to the terms of the agreement, Evonik will supply Hoku with a guaranteed quantity of TCS during the initial contract term of approximately one year. Hoku will have the option to request quantities of TCS in addition to the monthly guaranteed take or pay amount. Regular deliveries are expected to begin in July 2010, although Hoku has the option to request earlier shipments, as required. Hoku confirmed that it is using a limited quantity of TCS already supplied by Evonik for Hoku's reactor test demonstration this month, in addition to TCS supplied by another producer.
"Hoku is pleased to have established this relationship with Evonik," said Scott Paul, president and chief executive officer of Hoku Corporation. "Evonik is one of the world's leading suppliers of TCS. Our interim use of high-quality TCS from Evonik will enable us to ramp-up commercial production of polysilicon this summer before we complete the construction of our on-site TCS plant later this year."
About Hoku Corporation
Hoku Corporation 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 markets and installs turnkey photovoltaic systems and related services in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokucorp.com.
Hoku, Hoku Solar, and the Hoku Corporation logo are trademarks of Hoku Corporation, and Hoku Materials is the trademark of Hoku Materials, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.
Evonik Industries is the creative industrial group from Germany. In our core business of specialty chemicals, we are a global leader. In addition, Evonik is an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our company's performance is shaped by creativity, specialization, continuous self-renewal, and reliability.
Evonik is active in over 100 countries around the world. In its fiscal year 2009 about 39,000 employees generated sales of about EUR13.1 billion and an operating profit (EBITDA) of about EUR2.0 billion. For more information visit www.evonik.com.
This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials' ability to successfully ramp up production to make and ship commercial-quality polysilicon in the summer of 2010, if at all; the timing of when Hoku Materials will receive shipments of TCS from Evonik Degussa Corporation; the timing of when Hoku Materials will complete the construction of its on-site TCS facilities; Hoku Corporation's future financial performance; Hoku Corporation's business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Hoku Corporation's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Corporation's filings with the Securities and Exchange Commission, as applicable. Except as required by law, Hoku Corporation does not assume any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.