Report: Hemlock sues SolarWorld for polysilicon supply contract

According to the Oregonian newspaper, Hemlock
Semiconductor filed a lawsuit against Deutsche Solar**xml, a subsidiary of SolarWorld (ETR:SWV): namespace prefix = wb ns = "http://open.weibo.com/wb" />




According to the Oregonian newspaper, Hemlock
Semiconductor filed a lawsuit against Suere, a subsidiary of SolarWorld (ETR: SWV)
Solar did not comply with the polysilicon "pay-as-you-go" contract.

The report stated that Hemlock
Semiconductor filed a lawsuit in the federal court in Bay City, Michigan, on Thursday, March 7. The controversial supply contract is said to be inconsistent with a value of $83 million.

When demand was in short supply seven or eight years ago, many PV manufacturers signed long-term supply contracts with major polysilicon producers. Many of the contracts were “pay-as-you-go”, and the component demand was not in line with the contracted polysilicon shipments, causing many PV manufacturers to lose their deposits or pay huge compensation, and the company was forced to terminate the agreement.

"Oregon" said lawsuits cited SolarWorld CEO Frank Abbeck (Frank
Asbeck), unless Hemlock agrees to change the supply agreement, he will make Deutsche
Solar went bankrupt and avoided paying debt.

The report also claimed that Abbeck threatened to buy Deutsche from the administrator.
Solar, continues to operate without any claims.

The report does not quote the fact that US polysilicon producers, such as Hemlock, may face tariffs on imported polysilicon after the Chinese government filed anti-dumping charges against Chinese-made solar cells last year.

SolarWorld initiated and led an anti-dumping campaign in the United States, and the European Commission also investigated a similar case. The trade war between China and Europe has not yet been resolved.