MEMC Electronic Materials Inc. and German solar developer Conergy AGhave reached an out of court settlement of a lawsuit related to a solarwafer supply contract between Conergy and MEMC Singapore Pte. Ltd.
Theterms of the amended contract include a significant reduction in theminimum quantity of wafers that Conergy must purchase over theremaining 8+ years of the contract, as well as a minimum market sharecommitment should Conergy’s demand exceed the reduced quantities. Theamendment also modifies the pricing terms to be based on market ratessimilar to other MEMC long-term solar wafer supply agreements. Thesettlement includes a payment to MEMC of an undisclosed amount.
"Thisagreement provides the foundation for a strong strategic relationshipwith Conergy," said Ken Hannah, President of MEMC Solar Materials. "Inaddition to resolving the litigation and resuming shipments, we havealso agreed to work together to facilitate large projects in thefuture. This cooperation should help generate growth for both companiesand leverage the capabilities MEMC obtained with our recent acquisitionof SunEdison."
"This is a very positive development forConergy," added Conergy’s CEO Dieter Ammer. "It frees us from asignificant burden that was damaging our competitive position, gives usgreater business flexibility, and makes Conergy a much more attractivecompany. MEMC has truly transformed itself into a customer focusedcompany, and we are pleased to move forward with them as a strategically."
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