News Article
Hoku Scientific signs contract with Graeber Engineering Consultants
The company announces signing of polysilicon reactor supply contract for potential expansion.
Hoku Materials, a wholly owned subsidiary of Hoku Scientific established to manufacture and sell polysilicon for the solar market, announced that it signed a new polysilicon reactor supply contract with Graeber Engineering Consultants to give Hoku Materials the option to purchase additional polysilicon reactors for the production of up to 8,000 metric tons of polysilicon per year. Hoku Materials and Graeber Engineering Consultants are parties to an existing supply contract whereby Hoku has ordered reactors to produce 2,000 metric tons of polysilicon per year, with an option to purchase reactors for an additional 500 metric tons of polysilicon per year. Under this new agreement, Hoku has an option, without obligation, to order reactors at any time over a twelve month period at predetermined pricing and delivery terms. Locking-in reactor pricing and delivery terms is essential for planning the construction and procurement of a polysilicon plant because the reactors are among the longest lead time items and are a significant percentage of overall plant equipment costs."This additional contract with GEC gives us the flexibility to expand our production capacity at a predicable cost and with a guaranteed reactor delivery schedule," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "While our ability to expand our facility depends on the volume of our potential future customer contracts, this agreement enables us to scale our polysilicon reactor capacity up to 8,000 metric tons per year, which we believe is possible on our existing 67 acre property in Pocatello, Idaho."
