Hoku Signs Construction Contracts for Polysilicon Plant

The total installed cost target of the project is $260 million and the schedule calls for the first reactors to be operational in the second half of 2008, mechanical completion by January 31, 2009, and final completion by May 31, 2009.

"Signing an EPCM contract was an important component in order to construct our polysilicon plant and a necessary step for debt financing. We are pleased to have partnered with Shaw, a company with strong experience and a demonstrated record of delivering fast-track projects," noted Dustin Shindo, chairman of the board of directors, president and CEO of Hoku Scientific.

"We are impressed with the progress that Hoku has already made and look forward to contributing to their efforts and success," said Lou Pucher, president of Shaw's Energy & Chemical Group.

The EPCM contract is for the construction of a polysilicon facility with an annual capacity of 2,000 metric tons; however the company's plan to produce between 2,000 and 3,000 metric tons per year has not changed. The company is designing and building a facility that will be oversized in certain areas, to allow up to an additional 1,000 metric tons of polysilicon per year.

In addition, Hoku Scientific awarded a contract to JH Kelly LLC, a Washington-based general contractor, to provide construction services for the Pocatello, Idaho manufacturing plant. The contract is for construction services estimated at $120 million.