The polysilicon supply agreement provided for approximately $185 million in product shipments over a seven-year period. Following the volume reduction and price increase, the supply agreement provides for approximately $117 million in product shipments over a seven-year period. Solar-Fabrik is required to pay Hoku $27 million in prepayments for products.
Solar-Fabrik has paid $2 million to Hoku Materials, and an additional $25 million is to be paid in installments, subject to Hoku Materials’s successful achievement of certain polysilicon production and quality milestones and other conditions prior to the first shipment in 2009.
Christoph Paradeis, CEO of Solar Fabrik, said: We are fully committed to performing our contract obligations to Hoku and look forward to working together with Hoku in the successful completion of the project. We remain very confident in their ability to deliver polysilicon to us in 2009.
