Kapolei-based Hoku Scientific Inc. said yesterday its planned $220 million polysilicon production plant in Pocatello, Idaho, will have an initial payroll of 200 employees.

The city of Pocatello has reserved 450 vacant acres for Hoku's facilities and future expansion. Subject to financing and other conditions, engineering and construction are planned to begin this year, and Hoku expects the plant to be operational in late 2008, according to a news release from the company.

The state of Idaho offered $1.2 million in workforce training funds to the company and $200,000 to the city of Pocatello to offset public facility costs necessary to facilitate Hoku's plans. Hawai'i generally is not considered as a competitive location for manufacturing for several reasons, including high land and construction costs.

The plant, operated by Hoku Materials, will produce a highly pure form of silicon, the key material used in most solar power systems.

"We are pleased to have selected the city of Pocatello as the location for our polysilicon production facility," said Dustin Shindo, chairman, president and chief executive of Hoku Scientific. "We believe Pocatello is an ideal location for a business of this nature due to its pro-business environment, highly skilled labor force and ability to meet the operational needs of a growing company such as ours."

Idaho Gov. C.L. "Butch" Otter praised Hoku's decision to locate in Idaho.

"It speaks well of the company's commitment to efficiency and employing a quality workforce. It also says great things about the people of the Pocatello area and Idaho's commitment to attracting good jobs to our state."

Hoku's shares closed up 8 cents at $2.66 yesterday on the Nasdaq stock market.

Hoku Scientific develops and manufactures fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. The company is currently planning to expand its business to manufacture solar modules and polysilicon for the solar market.