REC has agreed to the termination of another long-term wafer supply contract, receiving a US$66 million (NOK370 million) one-time payment in compensation. The company had recently noted that several more contract cancellations could be concluded in the fourth quarter. REC did not disclose the customer involved.
With polysilicon and wafer prices in freefall, despite penalties and bank guarantees in place – PV manufacturers are increasingly finding it cost effective to purchase on the spot markets to gain access to cheaper prices. REC is one of many wafer suppliers finding it can receive cancellation payments on long-term contracts and sell product elsewhere or on more flexible terms.