Conergy - MEMC Silicon Supply Contract

MEMC Silicon Supply Contract

MEMC Electronic Materials (MEMC), a supplier of silicon to the semi-conductor and PV industry, had entered into a contract with Conergy in 2006 to supply silicon for Conergy's new module manufacturing plant. Due to the global silicon shortage, MEMC was able to negotiate very favorable terms that Conergy's management team felt obligated to accept. When the downturn in silicon prices occurred in 2008/2009 and the new Conergy management team attempted to renegotiate a more favorable terms, MEMC was initially unwilling and Conergy brought suit. In late 2009, an agreement was reached that improved terms for Conergy and will likely have positive effects throughout the PV supply chain as other manufacturers also seek to renegotiate unfavorable supply agreements in the new economic and supply conditions.