Hoku Scientific extends term of supply contract
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(AP) - Hoku Materials Inc., a subsidiary of Hoku Scientific Inc., said Tuesday it extended the term of its polysilicon supply contract with China-based Solarfun Power Hong Kong Ltd. to 10 years.
The company, which makes and sells polysilicon for the solar market, said the contract previously would have ended after eight years.
The change means Hoku will receive about $384 million for the contract, rather than the $306 million the company had expected with the shorter contract.
The two companies also agreed to a right to terminate the agreement if Hoku Materials can not raise a total of $75 million in financing for a polysilicon production plant by Dec. 31, 2008.
Hoku Materials said Solarfun can also end the agreement if it is unable to complete certain shipment milestones and quality specifications by Dec. 31, 2009.
