SunSi Poised to Benefit From Projected Increase in Chinese Solar Demand

NEW YORK, Jan 30, 2012 (GlobeNewswire via COMTEX) -- SunSi Energies Inc. ("SunSi") (otcqb:SSIE), a provider of the specialty chemical trichlorosilane ("TCS") to polysilicon makers in the solar industry, today highlighted how it is positioned to be a beneficiary of the expected solar market rebound in 2012. SunSi's management's views are in lockstep with recent comments about the "solar market outlook" made by the chief executive officers of two of the solar industry's top five manufacturers. These views were published in a Bloomberg News featured article on Friday, January 27, 2012, entitled: "Solar CEO's Predict Boom in China Will Ease Glut in 2012: Energy." http://www.bloomberg.com/news/2012-01-26/solar-ceos-predict-boom-in-china-will-ease-glut-in-2012-energy.html

Trichlorosilane is a critical raw material used to produce polysilicon; a key component used in the manufacturing of approximately 75% of all solar panels worldwide. A recent global oversupply of polysilicon resulting in pricing and volume declines has had a negative impact on SunSi's TCS business based in China. Consistent with the views expressed in the above referenced publication, the Company believes the current oversupply is short term in nature and will be absorbed as the market begins to rebound in 2012. Industry executives and experts quoted in the article forecast that global demand could rise between 20% and 40% in 2012, with demand in China believed to potentially double.

Polysilicon prices have been trending marginally higher in early 2012 which should indicate that market pricing and demand are beginning to stabilize. SunSi's China-based subsidiaries have a history of generating profitability and EBITDA through the sale of its high quality TCS. As the rebound occurs, the Company expects to benefit through improved operating results for the following reasons:


       
          --  Realization of improved gross margins as a result of recently negotiated
              10-15% price decreases in essential raw materials used to manufacture
              TCS.
          --  Continued key supplier relationships with two of the top three
              polysilicon producers worldwide.
          --  Flexibility to address increased potential demand in what may now be the
              industry's lowest factory cost structure, with a current 55,000 metric
              tons of capacity, scalable to 100,000 metric tons, and staffed by
              experts with 30 years of industry experience.
          --  Demonstrated ability to generate TCS sales outside of China; in final
              discussions with a number of new potential TCS buyers outside of China
              interested in purchasing the Company's TCS.
          --  Increased market share resulting from an expected industry
              consolidation.
          --  Sustained leveraging of low corporate overhead.
       
       
       



Richard St-Julien, SunSi's Chairman of the Board, stated, "The executives' opinions quoted in the Bloomberg article closely parallel SunSi's current view of the solar marketplace. We believe there will be a rebound in 2012, and that the strongest companies with proven management and 'lowest cost' structures will emerge as leaders in this industry. We are confident that SunSi is one of those companies; and that the solar market is in a growth trajectory in China and abroad. Our ability to produce high quality TCS and offer it for sale at competitive prices both within and outside of China is the cornerstone of our business and will be the foundation of our success moving forward."