A former polysilicon supply deal between Wacker Chemie and SunEdison, formerly MEMC, which went sour, has been settled.
An arbitration hearing at the Swiss Chambers' Arbitration Institution has led to Wacker retaining just over €24 million (US$26.7 million) in deposits from SunEdison as well as receiving €76.76 million (US$85.5 million) from SunEdison in installments through 2015.
Neither party had admitted to any wrongdoing or liability with respect to any of the claims related to the settlement.
The settlement resolved the disagreement between the parties regarding two long-term polysilicon supply agreements entered into in 2010.
Wacker had recently announced the settlement deal with a customer but had not revealed the customer’s identity. SunEdison confirmed the deal in a US SEC filing.
Long-term polysilicon supply deals had been norm due to shortages but the rapid capacity expansions that coincided with the PV industry’s first major downturn led to polysilicon process plummeting. Former ‘take or pay’ agreements crippled companies such as Q-Cells that let to contract cancellations and penalty payments to polysilicon producers.