SunSi Energies has entered into a definitive agreement for the purchase of a trichlorosilane (TCS) facility in Weihai City, China. The TCS facility, Wendeng He Xie Silicon, has a current TCS capacity of 20,000MT, which SunSi Energies, after the successful purchase, will look to increase to 60,000MT by 2011.
Under the agreement, SunSi will obtain 60% equity interest in Wendeng. The existing shareholders of Wendeng will add to the capacity expansion on a pro-rata basis in order to hold its 40% in equity interest. SunSi Energies will keep all management and employees on staff and anticipates Wendeng’s executive management to lend its technical know-how for the construction, training and operation of the TCS facility.
Richard St-Julien, president of SunSi Energies Hong Kong, said, “We are excited about the prospects of acquiring Wendeng and expanding its capacity. All the key factors are in place. Wendeng has an excellent management team, strong TCS product demand, a scalable facility, is strategically located and produces high quality TCS. We believe we have the opportunity to make SunSi the largest single site TCS producer in China that will generate significant profitability that will flow through the US public company.”