Renesola - Chinese Solar Panel/Silicon Recycling

OK found this article from 3 months later (july 2006) which says the talks broke down...

After talks between St. Peters, Mo.-based silicon wafer provider MEMC Electronic Materials Inc. and Motech Industries for the supply of solar wafers broke down, MEMC said today it has inked a new 10-year supply agreement with Suntech Power Holdings Ltd.

In April, MEMC and Motech signed a non-binding letter of intent (LOI) for the supply of solar wafers to Motech over an 8-year period, however the two said over recent days it became apparent that the companies would be unable to reach mutually acceptable definitive agreements within the prescribed timeframe. As a result, MEMC and Motech have agreed to discontinue discussions regarding their LOI.

Now, under terms of a new LOI, MEMC will supply solar wafers to Beijing, China-based Suntech over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in Q1 2007, the companies reported.

Sales of the wafers over the 10-year period would generate between $5 billion and $6 billion in revenue for MEMC.


As part of the arrangement and in order for MEMC to meet Suntech’s supply requirements, Suntech will advance funds to MEMC in the form of an interest-free loan or security deposit which will be used by MEMC for expansion of MEMC’s manufacturing capacity.

In addition, MEMC will receive a warrant to purchase up to a 4.99 percent equity stake in Suntech.

“Suntech is a fast growing player in the solar market, and we are pleased with the prospect of helping them achieve a leading role in the marketplace,” noted Nabeel Gareeb, MEMC CEO, in a statement.

“The solar market is growing at an impressive pace at over 30 percent per year, and MEMC is well positioned to capitalize on the opportunities available in this marketplace. We have been a leader in wafer manufacturing for over 40 years, and are excited about the opportunity to complete our expansion into this fast-growing adjacent space, while staying focused on our core competency of making wafers,” he continued.

Dr. Zhengrong Shi, chairman and CEO of Suntech said, “Locking in a steady supply of solar wafers is key to our ability to increase production output while maintaining our focus on innovation.”

The companies said they intend to finalize a definitive agreement by next month.

Tim Luke, managing director and global sector head for investment banking firm Lehman Brothers’ technology equity research in New York said in a statement today, “We believe the Suntech deal has more favorable terms than the Motech deal given the increasing supply demand imbalance in polysilicon and robust poly pricing environment.”

The firm also said it estimates that poly prices are up over 200 percent year-over-year at around $250 per kilogram.


Anyone know anything more about MEMC ? ...looks like they're a direct competitor