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Chinese Firm Buys Hoku Scientific

Hoku Scientific Inc. is being sold to China-based Tianwei New Energy Holdings; the takeover will help Hoku finish construction of its Idaho polysilicon manufacturing plant.

HONOLULU (AP) -- Hoku Scientific Inc. is being sold to a Chinese company that will provide cash to finish construction of Hoku's Idaho polysilicon manufacturing plant.

Honolulu-based Hoku Scientific announced Tuesday that it has signed a deal with Tianwei New Energy Holdings Co. Ltd., under which the Chengdu, China-based company will get a 60 percent controlling interest, along with rights to purchase more shares.

The takeover will help Hoku Scientific finish its $390 million plant in Pocatello, Idaho, which will produce polysilicon, a material used in making photovoltaic cells and computer chips.

The deal provides the Hawaii company with $79 million of prepayments for polysilicon, $50 million of which will be converted into Hoku stock. Tianwei will also loan $50 million to Hoku.