Troubled Hoku Materials polysilicon factory in Pocatello, Idaho, could be finally done in by the latest U.S. tariffs against Chinese solar panel companies.

Hoku Materials is a division of Hoku Corporation, which in turn is a subsidiary of Tianwei New Energy Holdings, which is an affiliate of China South Industries Group Corporation (CSGC).  Hoku Corp turned to China for financial help a few years ago, which is how it became a a subsidiary of Tianwei New Energy Holdings.

The Chinese companies were hoping to get around any possible future U.S. tariffs by taking over Hoku, but it’s now clear that was a wasted investment for them.

On May 17, 2012, the U.S. Commerce Department announced new tariffs on Chinese solar product makers, claiming that China dumped (sold for far less than what it cost to make them) their products on the U.S. market.

The new action, approved by President Obama, imposes tariffs of 31% or more on solar products coming from China. So far, Hoku Materials’ contracts for polysilicon are with Chinese companies only.  Despite several official start-up announcements, their polysilicon factory in Idaho has yet to actually start up!

Prior to the new U.S. tariff announcement, stock in Hoku Corp was trading at less than 30 cents per share.

GOOD AND BAD NEWS FOR IDAHO’S HOKU MATERIALS