SOURCE: SunSi Energies Inc.

SunSi Energies Inc.

November 30, 2010 09:15 ET

SunSi Enters Into Definitive Agreement to Acquire TCS Facility in China

NEW YORK, NY--(Marketwire - November 30, 2010) - SunSi Energies Inc. (the "Company") (OTCBB: SSIE) today announced that it had executed a definitive agreement to purchase a trichlorosilane ("TCS") facility, Wendeng He Xie Silicon Co. Ltd. ("Wendeng "), located in Weihai City, China. TCS is a chemical compound used in 90% of all solar cells and modules worldwide. The state-of-the-art Wendeng facility which was built in 2008, currently has a capacity of 20,000 metric tons ("MT") of TCS.

Under the terms of this agreement, SunSi will acquire a 60% equity interest in Wendeng; and subsequent to consummation of the acquisition, expects to increase Wendeng's capacity to a total of 60,000MT by 2011. The existing shareholders of Wendeng will contribute to this planned expansion on a pro-rata basis to maintain its equity interest of 40%. Additionally, the current executive management team of Wendeng will provide its technical expertise for the construction, training and operation of the facility and its expansion. All of the management and employees will stay in place.

Wendeng is recognized in China for the quality of its TCS, and its efficiency. Wendeng's current customer base includes the largest polysilicon producers in China. Legal and financial due diligence, which has been underway since mid-September when SunSi entered into a Letter of Intent to acquire Wendeng facility, is progressing well.

Richard St-Julien, President of SunSi Energies Hong Kong Limited, said, "We are excited about the prospects of acquiring Wendeng and expanding its capacity. All the key factors are in place. Wendeng has an excellent management team, strong TCS product demand, a scalable facility, is strategically located and produces high quality TCS. We believe we have the opportunity to make SunSi the largest single site TCS producer in China that will generate significant profitability that will flow through the US public company."

About SunSi Energies Inc. ("SunSi")

SunSi's goal is to acquire and develop a portfolio of high quality trichlorosilane producing facilities that are strategically located, and possess a potential for future growth and expansion. Through its wholly owned subsidiary, SunSi Energies Hong Kong Ltd., SunSi has executed a definitive Distribution Agreement with Baokai that entitles SunSi to distribute and sell both within and outside China all of the TCS produced at the Zibo Baoyun Chemical Plant.

Relatively unknown, but essential to the solar industry TCS is 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. It is believed that SunSi will become the first and only "pure play" public company in the world focusing exclusively on the production and sales of TCS.

SunSi Energies Inc. is traded on the NASDAQ OTC Bulletin Board under the ticker SSIE. For additional information, please visit the Company's website: www.sunsienergies.com.

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Forward-looking Statements:

This news release contains forward-looking statements related to the future financial condition and results of SunSi's operations. These statements are based on current expectations and estimates about the trichlorosilane markets and industry in which SunSi operates, management's beliefs and assumptions regarding these markets, future growth prospects, the closing of the Baokai acquisition, the commencement of generating revenues in 2010, completion of the He Xie acquisition and attaining an AMEX listing. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate. Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital and attaining the required number of shareholders to meet AMEX listing requirements, the price of TCS sold within China and outside of China, the level of production by the ZBC factory, and success in implementing productivity initiatives. Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.

Contact Information

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