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Conergy cancels long-term supply agreement with MEMC

Hamburg-based Conergy AG reached an agreement with the U.S. wafer manufacturer MEMC Electronic Materials, Inc. (MEMC) to an early termination of the wafer supply agreement, originally running until 2018.
Conergy is no longer bound to purchase wafers for about 600 million USD over the contract period. The deal allows Conergy to purchase raw materials at current market prices, far better rates that the original supply agreement was signed the company said.

As a compensation for the early termination of the wafer supply agreement, the equivalent of a cash security in the amount of about 21 million USD that Conergy had provided under the terms of contract will remain with MEMC.

"Following the sale of voltwerk electronics GmbH to Bosch and the alteration of our module production in Frankfurt (Oder) this contract termination with MEMC is another important step for Conergy in the strategic realignment of the company alongside the reduction of our own manufacturing depth. We can now operate more flexibly and can further reduce our cost structure on the raw materials side, because we participate to a greater extent in the overall price reduction for silicon-based raw materials,” said Conergy COO Alexander Gorski. “We are therefore glad to have achieved a mutually beneficial result for both parties and might potentially collaborate again in the future.”

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