SunSi Energies Hong Kong has signed a definitive agreement to form a trichlorosilane (TCS) production joint venture in Zibo, China. The SunSi Energies Inc. subsidiary will own 90% of a new company, Zibo Boayun Chemical Co., specifically formed to own the assets, expertise, and technology of an existing TCS production facility with a capacity of 25,000MT per year.
Under the terms of the deal, all of the assets–including permits, rights, and land usage, as well as the entire labor force and management team of the Chinese TCS producer–will be transferred, on closing of the transaction, into the newly formed joint venture company.
SunSi said that it will double the nameplate capacity of the Zibo TCS factory over the next 12 months and that normal operations will continue at the plant while the transaction takes place.
Michel Laporte, president of SunSi Energies, noted that Zibo is “well respected as a TCS producer, and we feel that we’ve teamed up with the best TCS producer in China. Both teams share the same goals and we are proud of the relationship we’ve built over the last six months. We can now focus on expanding production at the current facility and focus on business outside of China which is already coming our way.”
Financial terms of the agreement were not disclosed.