Solar EnerTech Corp. Executes LOI with PAIS Industries Group for Supply of Solar Grade Silicon Materials
Monday, June 12, 2006
MENLO PARK, CA -- Solar EnerTech Corp. (OTC BB: SOEN) (the “Company”) announced the execution of a Letter of Intent (“LOI”) with PAIS Industries Group (“PAIS”) whereby PAIS Industries would supply the Company with 1,200 metric tons of solar grade silicon ingots for a duration of three years. The intent of the LOI is calculated to supply Solar EnerTech with silicon feedstock needed to manufacture its leading edge solar cells and ensure access to affordable materials in spite of industry-wide silicon shortages. It is contingent upon completion of a formal agreement between PAIS Industries and the government of the Inner Mongolia Autonomous Region to allow PAIS to develop and process locally mined silicon into a marketable solar grade end product.
Solar electric energy demand has grown consistently by 25% every year for the past 15 years. A hurdle facing the rapidly growing $9.9 billion solar industry is a shortage and corresponding price increase of silicon, the main ingredient of solar photovoltaic (PV) cells. Securing a supply of affordable solar-grade silicon would be a significant accomplishment with highly positive implications for the Company’s growth.
Earlier this month Solar EnerTech announced that its team had traveled to Southern Mongolia at the invitation of the Region’s Autonomous Government and met with the Director of the Development and Reform Commission. Discussions resulted in a preliminary understanding toward achieving the rights to develop and process the area’s silicon.
As a result of the Company’s visit, several agencies have approached Solar Enertech to discuss possible joint ventures opportunities. Mr. John P. White, President of PAIS Industries, personally traveled to Inner Mongolia on the northern frontier of China, which is known as one of the world’s richest sources of silicon. Mr. White undertook to explore the viability of local mining operations and the investment outlook for the development of a silicon processing plant in the region. He then visited Solar EnerTech’s manufacturing site in Shanghai for an inspection tour and was highly impressed by its rapid progress.
Company Management has determined that the relationship with PAIS Industries is an excellent strategic alliance and believes that of the various agencies to have indicated their interest in the project, PAIS is currently the most likely candidate to successfully complete an agreement with the local government. After two rounds of discussions with the Solar EnerTech team, PAIS management signed a letter of intent to supply Solar EnerTech with 1,200 metric tons of solar grade silicon ingots for a duration of three years; thereby potentially meeting the Company’s initial production demand for silicon feedstock.
Solar EnerTech is focused on the development and manufacture of high quality solar cells, innovative applications and advanced technologies. Construction of the Company’s new state-of-the-art solar cell manufacturing plant in Shanghai is running ahead of schedule and within budget. The projected production capacity for its facility is estimated at an output of 20 megawatts per production line. At current prices this projection translates into roughly $37.5 million dollars in annual revenue per line. The Company’s strategic plan is to have the initial 20 megawatts in production by fourth quarter of this year.
PAIS Industries Group is run by President John P. White, a graduate Naval Architect and Marine Engineer. Mr. White owned and operated the Midwestern Steel Corporation in California for 20 years before acquiring and developing the Ponce Shipyard on Tallaboa Bay, Puerto Rico and currently owns a significant waste processing facility in Changsha, Hunan Province in China. He is an accomplished engineer and entrepreneur with strategic business relationships across the globe and a successful background in the consultation, management and development of manufacturing complexes. Mr. White has indicated that he will be in attendance at the June 17th Energy Summit in Beijing which is sponsored, in part, by Solar Enertech, following which, management of both PAIS and Solar Enertech will return to Inner Mongolia to continue negotiations. Further information will be made public as it becomes available.
About Solar EnerTech Corp. (OTC-BB: SOEN)
Solar EnerTech is a photovoltaic (PV) solar energy cell manufacturing enterprise based in Shanghai, China where the Company is establishing a sophisticated 42,000 square foot manufacturing and research facility in Shanghai’s Jinqiao Modern Science and Technology Park. Solar EnerTech plans to invest in PV cell research to develop higher efficiency cells and put the results of that research to use immediately in its manufacturing processes. Led by one of the industry’s top scientists, the Company’s R&D program will work to bring Solar EnerTech to the forefront of advanced solar technology research and production. The Company has also established a marketing, purchasing and distribution arm in Northern California’s Silicon Valley.
Except for statements of historical fact, the information presented herein may contain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Solar EnerTech Corp. has little or no control.
On Behalf of the Board
Solar EnerTech Corp.
Leo Shi Young, President
Investor Relations Contact
Boundary Point Investor Relations Inc.
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