SunSi to benefit from projected increase in Chinese solar demand

NEW YORK, USA: SunSi Energies Inc., a provider of the specialty chemical trichlorosilane (TCS) to polysilicon makers in the solar industry, highlighted how it is positioned to be a beneficiary of the expected solar market rebound in 2012.

Trichlorosilane is a critical raw material used to produce polysilicon; a key component used in the manufacturing of approximately 75 percent of all solar panels worldwide. A recent global oversupply of polysilicon resulting in pricing and volume declines has had a negative impact on SunSi's TCS business based in China. Consistent with the views expressed in the above referenced publication, the company believes the current oversupply is short term in nature and will be absorbed as the market begins to rebound in 2012. Industry executives and experts quoted in the article forecast that global demand could rise between 20 percent and 40 percent in 2012, with demand in China believed to potentially double.

Polysilicon prices have been trending marginally higher in early 2012 which should indicate that market pricing and demand are beginning to stabilize. SunSi's China-based subsidiaries have a history of generating profitability and EBITDA through the sale of its high quality TCS. As the rebound occurs, the Company expects to benefit through improved operating results for the following reasons:

* Realization of improved gross margins as a result of recently negotiated 10-15 percent price decreases in essential raw materials used to manufacture TCS.
* Continued key supplier relationships with two of the top three polysilicon producers worldwide.
* Flexibility to address increased potential demand in what may now be the industry's lowest factory cost structure, with a current 55,000 metric tons of capacity, scalable to 100,000 metric tons, and staffed by experts with 30 years of industry experience.
* Demonstrated ability to generate TCS sales outside of China; in final discussions with a number of new potential TCS buyers outside of China interested in purchasing the company's TCS.
* Increased market share resulting from an expected industry consolidation.
* Sustained leveraging of low corporate overhead.