Hoku Changes Construction Contracts With 2 Companies to Boost Scope of Work

POCATELLO, Idaho (AP) -- Hoku Materials, Inc., a subsidiary of Hoku Scientific Inc., on Wednesday said it amended contracts with Stone & Webster Inc. and JH Kelly LLC, to boost the scope of work under each related to the construction of a polysilicon production plant.

The new contracts allow for the completion of a plant that can produce 3,500 metric tons per year of polysilicon, while the previous contracts specified a plant that could make 2,500 metric tons per year, the company said.

Hoku said the change orders establish a target cost of $390 million for the project, below its previous estimate of $400 million.

The company said it plans to begin polysilicon production at the plant in the first half of 2009, with a ramp-up to full production capacity of 3,500 metric tons per year in the first half of 2010.

Hoku began construction of the Pocatello, Idaho, plant last year. The property is graded for construction and JH Kelly recently finished pouring the foundations for its administration and controls buildings, Hoku said.

Hoku shares rose 20 cents, or 2.1 percent, to $9.63 in aftermarket trading, after falling 15 cents to $9.43 in the regular session.