Hoku Materials preps for new facility

Hoku Materials, a division of Hoku Scientific Inc., will build a new facility that will churn out 2,000 tons of polysilicon per year. The Hawaii-based manufacturer said that construction costs are approximately $260 million.

"This is a major step forward in our plan to launch Hoku Materials and execute our polysilicon business strategy," said Dustin Shindo, Hoku Scientific CEO.

The plan for the new facility is in line with the company's signing of a supply contract with solar cell manufacturer Sanyo Electric Co. Ltd. Based on the contract, Hoku will receive about $370 million for a seven-year supply of polysilicon to Sanyo Electric. Shipments will begin in January 2009 and will last until December 2015. Sanyo Electric will give an initial deposit of $2 million to Hoku upon contract signing.