POCATELLO - A Hawaii-based energy company announced Monday morning it will build a $220 million polysilicon manufacturing plant expected to create 200 jobs within a planned Pocatello Regional Airport business park.

Hoku Materials, a division of Hoku Scientific, will produce 1,500 metric tons of polysilicon annually to make integrated circuitry for solar panels.

Construction will begin this year, and the plant is scheduled to open in late 2008, the company's chairman, president and chief executive officer, Dustin Shindo, told dignitaries during an 8:30 a.m. press conference at the airport.

The city reserved 450 acres of vacant land on the airport's western edge for the plant and its future expansion. Shindo envisions his company will be a magnet, attracting similar energy companies and spin-off businesses to Pocatello.

"Production at this level will make us a very competitive company in the polysilicon industry," Shindo said, adding there's a global polysilicon shortage.

Polysilicon from the plant will be sufficient to produce enough solar panels annually to generate 150 megawatts of energy.

Shindo, who was featured in the December issue of Business Week as one of the nation's up-and-coming entrepreneurs, committed in late summer to build the plant somewhere in Idaho and listed Pocatello, the Treasure Valley and the Magic Valley among his top preferences.

He said Hoku Scientific chose Pocatello largely because of the rail access and the ample supply of flat land at the airport, but he also liked the welcoming attitude of the people. He specifically credited Pocatello Mayor Roger Chase and Gynii Gilliam, executive director of Bannock Development Corp.

"Though this is only my second visit to Pocatello, I have been very impressed by your community's pro-business environment, strong workforce and potential to grow," Shindo said. Another benefit of the airport site, Shindo said, is that the city is currently working to create a foreign trade zone there, where certain tariffs on international trade would be relaxed. Much of the company's sales will be made oversees, particularly in Germany, Shindo said.

Hoku Scientific's existing plant in Kapolei, Hawaii employs 30 workers. Shindo said the company will continue manufacturing fuel cells and solar panels in Kapolei but may consider moving the solar panel operation to Pocatello at some point.

It's also possible Hoku Manufacturing will sell some polysilicon to Pocatello's largest private employer, AMI Semiconductor. Although AMIS requires higher grade polysilicon than the product used for making solar panels, Shindo said his plant will be capable of making it as pure as needed.

Area officials lauded the announcement as the result of cooperation among local entities and the first major commitment for an airport business park after many unsuccessful years of marketing it.

"We've been saying we need to get that hit. We needed to land one of these, and we landed a big one," said Matt Hunter, executive director of the Greater Pocatello Chamber of Commerce. "Phenomenal! What else can you say to something like this?"

The airport land is located in Pocatello but is also within Power County and Fort Hall Indian Reservation boarders. Until now, Mayor Chase believes differences among city, tribal and county leaders have hampered efforts to develop the airport.

"It's another great opportunity for all of us to take our community to a place we've never been before," Chase said, adding Hoku Scientific will bring high-paying jobs and a clean industry and will supply the world with an alternative power source. "This will be one of the bright stars in Idaho's future."

Power County Commissioner Ken Estep added, "It provides an opportunity for our governments to work together. We've got to talk, we've got to talk often, and we've got to keep everybody on board."

Shoshone-Bannock Business Council Vice Chairman Lee Juan Tyler hopes the agreement will facilitate "a healing" in Southeast Idaho. Business Council member Richard John Kutch argued the new plant will offer cleaner replacement jobs for positions lost when the former FMC phosphate plant closed in the winter of 2001.

News of the announcement has attracted statewide attention. New Gov. C.L. "Butch" Otter mentioned it prominently in his Monday afternoon State of the State address, and Idaho Commerce and Labor Director Roger Madsen spoke at the airport news conference.

Madsen said Idaho is coming off of its best year ever in terms of economic development and now has the lowest ever unemployment rate.

"I commend the cooperation between Bannock and Power counties, Pocatello, Bannock Development and the tribes," Madsen said. "To consider we can bring in high-tech science-and-technology jobs at a time like this is truly inspiring. In fact, it's humbling to me."

The city has created a tax increment financing district to help Hoku Scientific. In a TIF district, tax dollars generated from improvements are diverted from general taxing bodies and used to finance infrastructure. In this, the TIF revenue will finance improvements including streets, sewer and water lines and a rail spur.

Steve Brown, board chairman of Pocatello Development Authority, which administers the city's TIFs, said instead of bonding for the improvements in advance, TIF revenue will gradually repay the cost.

Brown anticipates access to the new company will come from the Rainbow Road exit to Interstate 86.

Now that the airport has enjoyed its first success, Brown is confident the business park will fill up within the next decade.

"This was such a big deal, such a big fish. I think other companies will look at Pocatello and take notice," Brown said. "Now we're going to have the beginnings of industrial manufacturing. We're not going to be ignored by Boise anymore."

By John O'Connell