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.
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