China Sunergy, REC to rewrite supply deal

With polysilicon prices drumming at bargain-basement levels, many PV firms are eager to revisit or flat-out tear up their long-term contracts with raw material suppliers signed in the past couple of years. The latest example: China Sunergy, which says it is renegotiating “in good faith” its seven-year >$400M deal with REC.

September 2, 2009 –  With polysilicon prices drumming at bargain-basement levels, many PV firms are eager to revisit or flat-out tear up their long-term contracts with raw material suppliers signed in the past couple of years.

The latest example: China Sunergy, which says it is renegotiating “in good faith” its seven-year >$400M deal with REC, which set down fixed cost and supply of 156mm monocrystalline silicon ingots and wafers through 2015.

In addition to “dramatic” pricing changes, China Sunergy adds that REC SiTech AS (the supplier unit of REC) “is dissolved as a result of a merger early this year.”

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