New SunSi Energies JV for trichlorosilane production facility

NEW YORK, USA: SunSi Energies Inc. announced that, through its wholly-owned subsidiary SunSi Energies Hong Kong Ltd., it has executed definitive Articles of Association for the creation of a newly formed Joint Venture, which will own and operate an existing Trichlorosilane (TCS) production facility in Zibo, China.

As previously announced, SunSi will own 90 percent of the Joint Venture Company; named Zibo SunSi Chemical Co. Ltd., specifically formed to own the assets, expertise and technology of the Zibo TCS production facility that currently maintains a production capacity of 25,000 MT per year.

Zibo SunSi Chemical Co. Ltd. will be engaged in the production of TCS, a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for photovoltaic (PV) panels that convert sunlight to electricity for homes, businesses and farms.

TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry.

Pursuant to the terms of the joint venture agreement between the parties, all of the assets, including permits, rights, land usage, as well as the entire labor force and management team of the Zibo TCS producer, will be transferred into Zibo SunSi Chemical Co. Ltd. upon closing of the transaction.

While the current name plate capacity of the facility is 25,000 metric tons of TCS per year, SunSi has committed to double this number over the next 12 months. Concurrently, the TCS production facility continues its normal activities.

SunSi Energies also announced that Child, Van Wagoner & Bradshaw, PLLC (CVB), their US-based auditors with offices in China, has completed the audit of the Chinese company's financial statements for the last two fiscal years under U.S. GAAP.

"We are pleased to have completed our due diligence and review of the Chinese company and its operations. While conducting our review over the past nine months, we have built a solid relationship with the corporation, while integrating ourselves in the management of the Chinese company.

"The Chinese team will be integrated into the newly formed entity as its members are not only well respected in the industry, but also the leaders in TCS production. We can now focus on the expansion and economic growth of the company," said Mr. Richard St-Julien, Vice President of SunSi Energies Inc. and President of SunSi Energies Hong Kong Ltd.