PV Crystalox receives €28 million in compensation

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PV Crystalox Solar plc announced it has reached a settlement agreement with an unnamed “leading PV manufacturer”. The dispute relates to unfulfilled obligations from a long-term supply contract, the company said.

The settlement established that the customer must pay a total of €28.8 million to PV Crystalox. This includes a payment of €14.5 million, which PV Crystalox already received in May. The remaining €14.3 million now has to be paid by the end of November.

Prior to today's settlement, the customer had the right to demand delivery of the outstanding wafers. This has now been waived, however.

The agreement was preceded by negotiations before the Court of Arbitration of the International Chamber of Commerce, PV Crystalox explained. The U.K. company lodged a complaint there in March, as a customer failed to meet its purchase commitments under a long-term supply contract.

The arbitral tribunal passed its ruling in November 2017. Accordingly, the customer should have paid around €36.5 million to PV Crystalox, including interests, by May 1.

“The obligation to pay was not conditional upon the Group's delivery of 22.9 million wafers, outstanding under the contract, although the customer's right to seek such delivery was not precluded by the award,” the company said.

The U.K. manufacturer closed its polycrystalline ingot production in the U.K. in July of last year. It is now sourcing ingots from a third-party supplier, where its processes these into blocks in the U.K., while continuing to supply wafers to customers from its facility in Germany.

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