Major US-based polysilicon producer Hemlock Semiconductor has filed suit against ‘Silicon Module Super League’ (SMSL) member, JA Solar for breaching a long-term polysilicon supply agreement.
Filings with the Supreme Court of the State of New York by Hemlock Semiconductor claim that JA Solar made only one (US$10.3 million) instalment of an initial advance payment of US$103 million to secure polysilicon shipments starting in 2011.
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Subsequently, Hemlock Semiconductor claimed in court filings that JA Solar did not order or take delivery of any polysilicon under the ‘take or pay’ contract.
The polysilicon producer is seeking damages totalling no less than US$921.1 million from JA Solar.
JA Solar said in an SEC filing confirming the court action, also noting that the company was reviewing the claim and would provide further updates when developments happen.
Hemlock Semiconductor has previously filed a similar law suit against SolarWorld’s former subsidiary, Deutsche Solar for breaching a ‘take or pay’ contract as well as against Japanese module producer Kyocera.
Other major PV manufacturers such as Yingli Green Energy and Trina Solar had previously settled with Hemlock over failure to comply with take or pay contracts.
