Change To Hoku (HOKU) Polysilicon Agreement With Tianwei

Posted by Tate Dwinnell | # |
10:30:07 am on July 7, 2009

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 polysilicon plant, and failing to make the shipments to Tianwei before 2010 would have resulted in a penalty against Hoku if the deal had not been renegotiated.

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