Monday, July 6, 2009

Hoku Materials Gets Boost From Customer

A supplier has handed Pocatello, Idaho-based Hoku Materials an early payment on funding for the firm, according to Hoku, helping the firm to manage its cash flow issues. According to Hoku, Tianwei New Energy (Chengdu) Wafer Co., Ltd., has agreed to accelerate two polysilicon supply contracts to accelerate a $5M payment to the firm, and has also eliminated near-term shipping obligations and long-term contract prices. Hoku, which has been facing issues with some suppliers to the firm's effort to develop a polysilicon plant for the solar market in Pocatello, said that the help allows the firm to "more effectively manage" its capital expenditures, as it continued to look for additional financing for its plant. Hoku had said earlier in June that it was facing "challenges" in lining up financing for buildings its polysilicon plant, due to some vendors asking to extend the time for contributions to the building effort.