Hemlock sues GET over breach of polysilicon supply deal

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Solar polysilicon manufacturer Hemlock Semiconductor has filed a US$737 million lawsuit against Green Energy Technology (GET) over an alleged breach of a long-term supply agreement.  

Hemlock claims GET, a Taiwan-based wafer manufacturer, defaulted on a down payment relating to a contract the two companies agreed in 2011 and failed to place orders it had committed to under the same deal.

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According to court papers seen by PV Tech, Hemlock Semiconducter agreed to supply GET with polysilicon manufactured at its plant in Michigan, US, up to 2020.

In return GET agreed to pay a US$81.5 million advance payment in installments. But after making its first payment, Hemlock alleges GET failed to make six subsequent monthly installments, amounting to US$46,047,500 – claims Hemlock says GET later acknowledged in correspondence.

Hemlock claims GET also defaulted on an installment in January 2013 worth US$16.3 million.

In addition to failing to meet its advance payment obligations, Hemlock maintains GET failed to order and pay for certain quantities of product it had agreed to purchase in 2013.

As a result Hemlock terminated its supply agreement with GET on 13 August, demanding payment of all amounts under the contract, totalling US$737,235,429.17.

In its lawsuit against GET with a circuit court in Saginaw County, Michigan on 14 August, Hemlock is seeking damages not less than US$62,347,500.

PV Tech was unable to reach GET for comment. Earlier this year GET reported that its wafer production utilisation was running at 95% capacity.

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