Solar

MEMC Announces LOI for Solar Wafer Supply Agreement

St. Peters, Missouri [RenewableEnergyAccess.com] MEMC Electronic Materials signed a nonbinding Letter of Intent (LOI) with Motech Industries to supply solar wafers to Motech over an eight-year period, to generate at least $1.6 billion in revenue to MEMC. The LOI also provides that Motech will provide an interest-free loan/security deposit to MEMC, which would be for the expansion of MEMC’s manufacturing capacities. Motech would transfer to MEMC, for an undisclosed amount, ownership of the solar wafer manufacturing business with an annual manufacturing capacity of at least 120 megawatts. As part of the agreement, MEMC will receive a warrant to purchase a 5% equity stake in Motech. The effective date of a definitive agreement, if executed, is expected to be July 2006. Execution of the definitive agreement is contingent on due diligence by MEMC and its advisors, agreement on all material terms and other customary closing conditions for such transactions. MEMC is currently conducting similar discussions with other solar product manufacturers.