Yingli Green forced into court arbitration over US$897.5 million polysilicon contract claim

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Yingli Green had renegotiated multiple polysilicon supply contracts by 2013 but stopped purchasing polysilicon from one supplier from 2013 onwards, leading to that supplier seeking arbitration.

Struggling major China-based PV manufacturer Yingli Green Energy is being forced into arbitration at the London Court of International Arbitration (LCIA) by a major polysilicon producer over a long-term ‘take or pay’ supply contract with damages claimed to be US$897.5 million. 

As PV Tech highlighted, Yingli Green recently reported a 2017 annual net loss of US$510 million and a cash position of only US$58.1 million. The company was forced to raise warnings over its ‘going concern’ position. 

Like many PV manufacturers around 2007, shortages of polysilicon led to many locking-in fixed price long-term supply contracts that were based on ‘take or pay’ agreements. 

By 2011, polysilicon supply had increased significantly and spot market prices has collapsed, leaving companies paying higher prices than the open market and taking the agreed polysilicon contracted quantities and selling the excess of the open market at or loss.
Some major cell producers such as Q Cells, Suntech and last year, SolarWorld, primarily went bankrupt over these ‘take or pay’ supply contracts.

Adding to the recent woes was the decision by China’s Ministry of Industry (MOFCOM) to impose high import duties on overseas polysilicon producers, notably the US at the begining of 2014, as part of a solar trade war with the US.

Yingli Green had renegotiated multiple polysilicon supply contracts by 2013 but stopped purchasing polysilicon from one supplier in 2013 onwards, leading to that supplier seeking arbitration.

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

July 4, 2022
Tongwei has become the latest upstream solar manufacturer to increase prices as the cost of raw materials continues to spiral.
PV Tech Premium
June 30, 2022
US authorities’ move to require documentation showing the source of quartzite in solar module imports should come as no surprise, experts have said, amid suggestions most companies will be able to overcome the latest hurdle that threatens to delay shipments.
June 30, 2022
The solar industry supply chain’s jitters continued this week after polysilicon prices hit another high, driving silicon wafer prices further upward too.
June 29, 2022
The US solar industry is facing fresh module shipment delays after new import documentation was demanded by Customs and Border Protection (CBP).
June 28, 2022
Solar and wind reached a 10.2% share of power generation in 2021, the first time the two technologies provided more than 10% of global power, according to new research from bp.
PV Tech Premium
June 27, 2022
The latest round of price surges in the solar value chain has caused PV module prices in China to exceed RMB2/W (US$0.30c/W).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event