Hoku Materials Plans New Polysilicon Plant for Pocatello, Idaho

POCATELLO, Idaho--Hoku Materials, a division of Hoku Scientific Inc., plans to build a $220 million polysilicon production plant in Pocatello, Idaho.

The city of Pocatello has reserved 450 acres of vacant land for Hoku’s facilities and future expansion. Subject to financing and other conditions, engineering and construction is planned to begin this year. Hoku expects the plant to be operational in late 2008 with a payroll of 200 employees.

The Hawaii-based company focuses on clean energy technology and plans to produce a highly pure form of silicon, the key material used in most solar power systems.

"We are pleased to have selected the city of Pocatello as the location for our polysilicon production facility," said Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific. "We believe Pocatello is an ideal location for a business of this nature due to its pro-business environment, highly skilled labor force and ability to meet the operational needs of a growing company such as ours."

The company has contracted with CH2M HILL Lockwood Greene for engineering and other services for the Pocatello plant. CH2M HILL Lockwood Greene is one of the largest and most experienced engineering and construction management companies in the world.

Idaho Governor C.L. "Butch" Otter praised Hoku’s decision to locate in Idaho. "It speaks well of the company’s commitment to efficiency and employing a quality work force. It also says great things about the people of the Pocatello area and Idaho’s commitment to attracting good jobs to our state."

Idaho Commerce & Labor, Bannock Development, the city and Idaho State University have been working together to attract high technology companies like Hoku Materials to southeastern Idaho. The state has offered $1.2 million in work force training funds to the company and $200,000 to the City of Pocatello to offset public facility costs necessary to facilitate Hoku’s plans.

Idaho Commerce & Labor Director Roger B. Madsen received a call from Hoku officials last spring when they were searching for expansion sites. Since then, his agency has been working with the city and the Bannock Development Corporation to land the project for Pocatello.

"The support of Mayor Chase and the Bannock Development Corporation helped seal the deal," Madsen said. "Hoku’s advancements in the area of fuel cell technology and any additional spin-offs could help move our state into the next generation of energy development."

Founded in 2001, Hoku Scientific Inc. went public in August 2005 with an initial offering of 3.5 million shares of its common stock that opened at $6 per share.

Hoku Scientific develops and manufactures fuel cell membranes and membrane electrode assemblies for stationary (including residential and back-up power applications) and automotive proton exchange membrane fuel cells. The company is currently planning to expand its business to manufacture solar modules and polysilicon for the solar energy market.