Hoku’s Pocatello plant just got another reprieve. According to Reuters, Hoku just announced that construction will begin again on its Pocatello, Idaho plant. Under the change order agreement that Hoku entered into with construction company JH Kelly, Hoku will pay JH Kelly $5 million of the total $12 million that is past due. JH Kelly hold off foreclosure proceedings until after December 1st of this year, and as long as Hoku makes the pre-payment … Read the rest
Tag Archives: hoku
Hoku Materials’ (HOKU) Idaho Plant Granted Foreign Trade Zone Status
Hoku Materials just announced that its Pocatello, Idaho plant has been granted foreign trade zone status. This news means that Hoku will be except from paying duties on all supplies it imports from other countries, as long as the products produced are intended for export. Since approximately 80% of Hoku’s expected polysilicon capacity has already been sold to Chinese companies, at least 80% of its raw materials should be duty-free.
In a press release, … Read the rest
Hoku Scientific (HOKU) Retains Deutsche Bank For Possible Sale Of Company
One month ago we first reported on Hoku’s financing concerns for the Idaho plant which sent the stock plunging 30%. Hoku Scientific (HOKU) is taking another nose dive today (down 15%) after it reported that its financial troubles have forced the company to slow construction on its Idaho polysilicon plant while it looks for investors and/or a possible sale of the company. By all indications, it appears this is a company that will soon … Read the rest
Change To Hoku (HOKU) Polysilicon Agreement With Tianwei
Hoku just announced an amendment to its polysilicon agreement with Tianwei New Energy Wafer Co Ltd. The amendment relieves Hoku of its upcoming shipping obligations in exchange for an 8 percent reduction in the price of the polysilicon.
Instead of paying Hoku $511 million over the 10-year contract period, Tianwei will only pay $468 million. In addition, Hoku will receive a $5 million payment upfront. Hoku is having some trouble getting financing to finish its … Read the rest
Hoku Scientific (HOKU) Plunging 30% On Financing Concerns
Hoku Scientific (HOKU) reported earnings after the bell yesterday, but it isn’t the earnings that’s driving the stock down this morning, it’s concern that the company won’t be able to raise enough cash to fund construction of its Idaho polysilicon plant and possibly remain in business. The company has a $106 million gap that it’s working to fill through customer pre payments and financing. However, due to a tough credit market, the company is acknowledging … Read the rest
Hoku Scientific (HOKU) Surging With Heavy Volume Above 200DMA
Hoku Scientific (HOKU) is really surging today with heavy volume above the 200 day moving average for the first time in well over a year. I don’t see any news today, but the company did announce an economic development package (ie tax breaks) with the City of Pocatello of Idaho which we covered a few days ago. Perhaps an announcement is coming. Will update this post if I find anything. Some heavy selling pressure coming … Read the rest
Hoku Materials (HOKU) Signs Economic Development Agreement With Pocatello
Hoku Materials just announced a new economic development agreement with the City of Pocatello. The deal could grant Hoku up to $49 million worth of tax increment financing. Under the terms of the contract, Hoku will get up to $26 million in incremental property tax reimbursement to cover its capital costs from setting up a polysilicon production plant in Pocatello. Then, as long as Hoku hires a certain number of employees, the company will become … Read the rest
Hoku (HOKU) And JH Kelly Confirm Schedule For Polysilicon Plant Start-Up Operation
Hoku Materials, Inc just announced that it has entered into a change order agreement with JH Kelly regarding the construction and start-up of Hoku’s polysilicon plant. The change order redistributes the potential bonus awards due JH Kelly for meeting Hoku’s schedule goals. Previously, Hoku had offered JH Kelly the chance to earn up to $5 million in bonus payments for meeting goals related to completions dates, budget and safety goals, but only $1.5 million of … Read the rest
Hoku (HOKU) And Solarfun (SOLF) Renegotiate Contracts
Hoku Materials, Inc. and Solarfun just announced a renegotiation of the polysilicon supply contract between the two companies. Solarfun was previously obligated to pay Hoku $18 million by March 31st, but the agreement has been changed so that Solarfun can pay in installments according to the following schedule: 1) $5 million paid on March 30; 2) $8 million in July $2009; 3) $5 million to paid in installments of $1 million each during August and … Read the rest
Hoku Scientific (HOKU) Should Have Portion Of Idaho Plant Running This Year
Hoku Scientific CEO Dustin Shindo told the HonoluluAdvertiser.com that the company expects to have part of its Pocatello, Idaho plant up and running by the end of this year. At full speed, the $390 million plant will employ approximately 200 workers to produce 4,000 metric tons of silicon per year.
The plant should have power by June or July, according to Shindo, who stated "One of the reasons we selected Pocatello and the state of … Read the rest