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MEMC Electronic Materials and Conergy have reached an out of court settlement relating to the companies lawsuit related to a solar wafer supply contract.
The discrepancy was between Conergy and MEMC Singapore, however the contract has now been amended to include a reduction in the minimum quantity of wafers that Conergy must purchase over the eight plus years of the contract. The company must also show a minimum market share commitment if its demand exceeds the reduced quantities.
The amendment also makes changes to the pricing terms, which will now be based on market rates similar to other MEMC long-term solar wafer supply agreements. The settlement includes a payment to MEMC of an undisclosed amount.
"This agreement provides the foundation for a strong strategic relationship with Conergy," said Ken Hannah, president of MEMC Solar Materials. "In addition to resolving the litigation and resuming shipments, we have also agreed to work together to facilitate large projects in the future. This cooperation should help generate growth for both companies and leverage the capabilities MEMC obtained with our recent acquisition of SunEdison."
"This is a very positive development for Conergy," added Conergy's CEO Dieter Ammer. "It frees us from a significant burden that was damaging our competitive position, gives us greater business flexibility, and makes Conergy a much more attractive company. MEMC has truly transformed itself into a customer-focused company, and we are pleased to move forward with them as a strategically."
