POCATELLO, ID and WUXI, CHINA, Jun 30, 2010 (MARKETWIRE via COMTEX) --
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Corporation
(NASDAQ: HOKU), established to manufacture and sell polysilicon for
the solar market, and Suntech Power Holdings Co., Ltd. (NYSE: STP),
the world's largest producer of crystalline silicon solar panels,
today announced that they have amended their polysilicon supply
contract to remove all milestones, adjust the contract term, and
reschedule the initial shipment date.
With the removal of the milestones, Suntech is no longer obligated to
pay the scheduled $30 million prepayment that was previously
committed. However, Hoku will retain the $2 million in prepayments
that Suntech has already paid, which will be credited against future
shipments of polysilicon. These payments are separate from the $20
million that Suntech invested in Hoku's common stock through a
private placement in early 2008. The term of the agreement was
shortened to one year to match Suntech's prepayment of $2 million,
and pricing and volume were fixed for the term of the agreement. The
agreement will automatically be renewed after the initial term with
the same terms unless terminated by either party. Hoku is not
obligated to deliver polysilicon until June 2011.
"Suntech is one of the world's leading solar companies, and we are
very pleased by the strength of our partnership," said Scott Paul,
president and CEO of Hoku Corporation. "We originally signed our
polysilicon sales agreement with Suntech in 2007, and -- owing to
changes in the polysilicon market, and in our own ramp-up and
production schedule -- the original milestones and prepayment
schedule had simply become outdated. We are pleased to have found a
mutually-beneficial way forward and look forward to many more years
of continued partnership, in both our polysilicon and our PV
integration business units."
"Hoku has continued to make significant progress with their
polysilicon project, despite some very challenging market conditions.
With their strong backing by Tianwei, a compelling cost structure,
and a demonstrated commitment to long-term partnerships, we look
forward to a long and mutually beneficial relationship with Hoku,"
said Steven Chan, Suntech's Chief Strategy Officer.
About Hoku Corporation
Hoku Corporation (NASDAQ: HOKU) 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.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces
industry-leading solar products for residential, commercial,
industrial, and utility applications. With regional headquarters in
China, Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than 10,000,000
photovoltaic panels to thousands of customers in more than eighty
countries. Suntech's pioneering R&D creates customer-centric
innovations that are driving solar to grid parity against fossil
fuels. Our mission is to provide everyone with reliable access to
nature's cleanest and most abundant energy source.
For more information about our people and products visit
http://www.suntech-power.com
Forward-Looking Statements
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 to Suntech by June 2011, if at
all; 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 the Company'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 the Company's filings with the Securities and
Exchange Commission. Except as required by law, the Company assumes
no 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.
For more information contact:
Hoku Corporation
1288 Ala Moana Blvd.
Honolulu, Hawaii, 96814, USA
Tel: +1-808-682-7800
www.hokucorp.com
Rory Macpherson
Investor Relations Director
Suntech Power Holdings Co., Ltd.
Tel: +86-21-6288-5574
SOURCE: Hoku Corporation; Suntech Power Holdings Co., Ltd.
http://www.hokucorp.com
