Another long-term take-or-pay wafer sales contract with an unidentified customer has been announced by REC. Overcapacity and the collapse in wafer prices has forced many PV cell and module manufacturers to restructure and or cancel supply agreements to better reflect market dynamics over the last couple of years. REC said that it accepted the latest contract cancellation with compensation to the company of approximately €22 million.
REC said that wafer deliveries to the customer under the existing contract would continue until the end of 2011. The majority of the compensation (NOK 160 million) is expected to be recognized in the fourth quarter 2011, with the cash amount to be received in the first quarter 2012.
Only yesterday, (December 19, 2011) aleo solar said that it expected to generate losses in 2011 of between €25-€30 million with a significant amount due to expenses related to cell supply contracts established between 2005 and 2008.