Commercial Agreements
REC has entered into a significant long-term agreement for supply of mono-crystalline silicon wafer to Suniva, Inc. Under the agreement, REC will until 2013 deliver wafers worth more than USD 300 million.
REC also entered into a significant long-term agreement for supply of mono-crystalline silicon wafers to China Sunergy Co. Ltd. Under the agreement, REC were to deliver wafers worth more than USD 400 million until 2015. It was structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. However, in 2009, this contract became the cause of a legal battle between REC and China Sunergy. As spot prices for wafers fell dramatically in 2009, China Sunergy found itself bound to prices well below spot, prompting a stall in purchasing, leading REC to terminate the contract.
Read more about this topic: Renewable Energy Corporation
Famous quotes containing the words commercial and/or agreements:
“So by all means let’s have a television show quick and long, even if the commercial has to be delivered by a man in a white coat with a stethoscope hanging around his neck, selling ergot pills. After all the public is entitled to what it wants, isn’t it? The Romans knew that and even they lasted four hundred years after they started to putrefy.”
—Raymond Chandler (1888–1959)
“Were it not for the corruption and viciousness of degenerate men, there would be no ... necessity that men should separate from this great and natural community, and by positive agreements combine into smaller and divided associations.”
—John Locke (1632–1704)