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Supply Side Economics at SunSi (OTC-BB: SSIE)

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Supply Side Economics at SunSi (OTC-BB: SSIE)


SunSi Energies Inc. (OTC:SSIE), which aims to provide the raw materials used by solar companies like LDK Solar Co., Ltd. (NYSE: LDK) and JA Solar Holdings Co., Ltd. (Nasdaq: JASO), is revamping their leadership team in a big way. The company is setting the stage to pounce on neglected market segments and become a leading supplier to the solar industry.

SunSi focuses in on acquiring Chinese facilities that produce Trichlorosilane (TCS), which is the raw material needed for producing solar photovoltaic (PV) components. SunSi may be researched here http://www.sunsienergies.com

Emerging Strong from China

SunSi Energies is looking to consolidate TCS producers in China in order to become a stand out player in the industry. After appointing credible leadership with extensive expertise, the team is now focused on a vigilant acquisition and expansion strategy.

SunSi realizes the current demand in China, acknowledges existing production inefficiencies, and can’t ignore the growing potential for export. The company has ambitions of becoming the largest TCS producer in the world, and now has the management, plans in place, and sustainable focus to bring it all to fruition.

Battling Oil with Seasoned Management

Soon, the world will decide that it is tired of getting its energy from dirty and inefficient fossil fuels. As solar becomes a prominent market force and increasingly more cost-effective, SunSi Energies is the company that will be holding the keys to the gate in terms of resources. This need for alternative energies like solar power is making TCS a huge factor in the world’s coming energy revolution.

Michel G. Laporte is the Chairman and CEO of SunSi Energies and is a seasoned veteran in his field. Mr. Laporte brings extensive work experience, which includes the management and development of mutual funds and a background in civil engineering. With respect among his peers and an arsenal of entrepreneurial will power, Mr. Laporte is leading the way and ushering in a new team of experts needed to bring SunSi to the next level.

Mr. Zhang Fahe has been appointed as the Director of Technology and holds over 30 years of experience in the Chinese chemical industry, while Mr. Chen Changming has been appointed as Chief Representative and possesses a vast knowledge of foreign trade and investment. This elite officer panel also includes Mr. David Natan who has been appointed as their new CFO. Mr. Natan brings over 30 years of merger, acquisitions, equity capital and expert management skills with him.

Fossil fuels may still be the cheapest form of energy, but solar power has broken the $1 per watt barrier and is getting ever closer to economic viability. As for the future, SunSi Energies is aiming to form the base of the industry with its expert team. By consolidating the supply-side of the solar industry, SunSi is well positioned to benefit from the coming rapid adoption of solar technologies.

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SunSi Energies Inc: An Undiscovered Solar Pure Play

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SunSi Energies Inc: An Undiscovered Solar Pure Play


What do LDK Solar Co., Ltd. (LDK), ReneSola Ltd. (SOL) and JA Solar Holdings Co., Ltd. (JASO) have in common? They all utilize Trichlorosilane (TCS) as a key ingredient in the manufacture of photovoltaic solar modules, also produced by companies such as SunSi Energies Inc. (SSIE).

Trichlorosilane is a chemical compound that contains silicon, hydrogen and chlorine, which at high temperatures decomposes to produce silicon, and purified trichlorosilane. It is the principal source of ultrapure silicon that is used in both the stable semiconductor industry and the emerging solar industry.

While the chemical is primarily produced by large chemical companies like The Dow Chemical Company (DOW) and E.l. du Pont de Nemours & Company (DD), SunSi Energies Inc. (SSIE) aims to consolidate the supply being produced in one of the world’s largest consuming countries – China.

SunSi Energies has already established a Hong Kong-based subsidiary, SunSi Energies Hong Kong Inc., which will source Chinese TCS production facilities. In fact, the firm has already acquired 90% of Zibo Baokai Commerce and Trade Co. (“Baokai”). Baokai owns the exclusive distribution rights within China of the TCS produced by Zibo Baoyun Chemical plant (ZBC).

This acquisition will allow SunSi to begin generating revenues, pending the completion of other Joint Venture transactions with TCS producers, and to strengthen SunSi’s presence within the growing Chinese market, particularly with large Chinese polysilicon producers.

Over the next three years, SunSi Energy plans to acquire facilities and expand to a manufacturing capacity of over 125,000 metric tons per year. While most of the sales will initially be to Chinese companies, the firm plans to expand its sales efforts into higher-margin markets like Europe.

With margins of between 20% and 40%, TCS is significantly more profitable than other products along the solar value chain. And while the commodity has fallen moderately in 2009, the economic rebound in 2010 has helped prices recover significantly from their lows.

Many experts anticipate the solar industry will rebound in 2010 and 2011, despite the economic downturn. Solarbuzz, a highly-respected industry source, projected that the industry would more than double over the 2007 levels by 2012, with a growth rate of over 135%.

Investors looking to play this trend may want to look beyond the traditional solar companies and into a “pure play” further up the value chain – SSIE Valued at just $85.67 million, this stock has the potential to capitalize on the continued move towards alternative energy in the U.S. and abroad.

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