Hoku Materials, Inc (HOKU) Announces Change In Polysilicon Plant Construction Contract

Hoku Materials, Inc, has just with Stone and Webster, Inc, to redefine the company’s responsibilities in the construction of Hoku’s new polysilicon plant.  Under the terms of the change order agreement, Hoku will delay engineering and construction of the trichlorosilane production area of the plant until April, and will transfer construction management services to JH Kelly, LLC.

Dustin Shindo,  Hoku’s chairman and CEO, described how the change will affect the company:

“The revised scope of work is consistent with our plan to start-up the plant and commence shipments to our customers in the second half of 2009, which may be before our TCS plant is operational. Because the engineering of our TCS plant has been substantially completed by Dynamic Engineering, Inc., Stone & Webster is well positioned to resume the detailed engineering work for our TCS plant when our cash flow supports this investment. Our earlier ordering of long lead-time items, such as fluidized bed reactors and distillation columns, allows us to suspend this work for a few months without disproportionately impacting the final completion schedule.”

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