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Hoku Materials and Jinko Solar have amended their polysilicon supply agreement. The companies said that, according to the terms of the amendment, both have agreed to reduce the term of the sales agreement by one year and to delay the first shipment date from Hoku's Pocatello, ID, plant from December 2009 to December 2010.
This will result in a 10% reduction of the total volume of polysilicon to be sold by Hoku to Jinko, according the the companies. The pricing and other commercial terms of shipment for the remaining nine years remain unchanged.
"This amendment provides clear benefits to both parties by adjusting our agreement to account for the financing-related delays experienced by Hoku during the past year and the realities of the polysilicon market today," said Dustin Shindo, chairman/CEO of the polysilicon company's parent, Hoku Scientific. "Jinko maintains its long-term pricing hedge and supply stability, and Hoku will enjoy some additional flexibility during our first year of production, the year in which our production cost per kilogram of polysilicon is expected to be the highest."
Hoku also reported that Tianwei New Energy Holdings, the company's prospective majority investor, had consented to the amendment.
