SunSi Energies has signed a letter of intent to buy 60% equity interest in Wendeng He Xie Silicon, a trichlorosilane (TCS) facility with an annual production capacity of 20,000MT located in Weihai City, China. Under the terms of the deal, SunSi will also increase the plant’s capacity to 60,000MT.
The existing shareholder of He Xie will contribute to the expansion in order to maintain its equity interest of 40% in the company, as well as provide the technology and the technical assistance and expertise for the construction, training, and operation of the facility and its expansion. All current management and employees will remain in place.
The companies said that due diligence and a full audit are already under way. SunSi expects the transaction to close within three months, with the expansion efforts set to begin in March 2011 and be completed in January 2012.
Further financial terms of the deal were not disclosed.
Michel Laporte, chairman/CEO of the pure-play TCS company, said: “During the past few months, we have worked toward building our production capacity by targeting an existing acquisition of a solid TCS production facility that held a tactical position and expertise. He Xie offers everything we could have hoped for in a company.”