MEMC Electronic Materials and Tainergy Tech have agreed to reduce monocrystalline wafer shipment levels in their long-term supply contract.
Due to lower shipments levels in the first four years of the 10-year agreement, which was based on pre-determined pricing on a take-or-pay basis, lower wafer shipment levels have been agreed for the remaining duration of the supply deal.
However, Tainergy will forgo around half (US$25 million) of the original deposit, but the remaining deposit of US$24.1 million would be refunded on a rate basis as and if purchases are made over the remaining contract term. Tainergy will not be required to provide further deposits.
The supply deal which was valued at over US$3 billion was started in 2008 at the height of polysilicon and wafer shortages, forcing many PV manufacturers to secure long-term supply agreements.