Kyocera reaches settlement on polysilicon contract with Hemlock
Japanese solar module producer Kyocera has reached a settlement in its contract dispute with U.S.-based polysilicon manufacturer Hemlock Semiconductor.
Between 2005 and 2008, Kyocera closed four long-term purchase agreements (LTAs) with Hemlock Semiconductor for the delivery of solar-grade polysilicon running through December 31, 2020. The fixed contract price has been significantly higher than the market price since about 2011.
As of September 30, 2018, Kyocera still had to purchase polysilicon material worth 119.933 billion yen (US$1.057 billion), of which 33.532 billion yen ($295.6 million) were already prepaid.
According to the settlement reached on November 28, Kyocera will relinquish the advance payments already made to Hemlock, will return the polysilicon material Kyocera owns and pay a settlement amount. As a result, Kyocera will account a loss of approx. 51.1 billion yen ($450.4 million).
“Following this settlement, the significant divergence between the market price of polysilicon material and the fixed contract price in the LTAs will be resolved. Kyocera does not plan to account additional loss based on the LTAs,” the company commented.
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