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MEMC Signs LOI for $1.6B Solar Wafer Agreement

MEMC Electronic Materials, Inc. (NYSE: WFR) has signed a non-binding Letter of Intent (“LOI”) with Motech Industries, one of the top producers of solar cells in the world, for the supply of solar wafers to Motech. Under the terms outlined in the LOI, MEMC will supply solar wafers to Motech over an 8-year period, with pre-determined pricing, on a take or pay basis. Sales of the wafers over the 8-year period would generate at least $1.6 billion in revenue to MEMC. The LOI also provides that Motech would provide an interest-free loan/security deposit to MEMC, which would be used for the expansion of MEMC’s manufacturing capacities. Additionally, Motech would transfer to MEMC, for an undisclosed amount, ownership of the solar wafer manufacturing business with an annual manufacturing capacity of at least 120 megawatts. As part of the agreement, MEMC will also receive a warrant to purchase a 5% equity stake in Motech. The effective date of a definitive agreement, if executed, is expected to be July 2006. Commenting on the signing of the LOI, Nabeel Gareeb, MEMC’s Chief Executive Officer, said, “We are pleased at the prospect of partnering with such a fast growing and respected solar cell manufacturer as […]

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Maxwell Forms Offshore Alliance in China

Maxwell Technologies, Inc. (Nasdaq: MXWL) has formed a toll manufacturing alliance with Belton Technology Group, a major Chinese manufacturer of precision components, flex circuits, circuit boards and other products, to support Maxwell’s forecasted growth to multi-million-unit annual volumes for its BOOSTCAP ultracapacitors and multi-cell modules, driven by automotive, transportation and industrial electronics applications that are advancing toward high-volume production. Dr. Richard Balanson, Maxwell’s president and CEO, said that the offshore manufacturing alliance enables the company to tap into Belton’s large existing factories, supply chain operations and 20,000-person skilled production workforce to ensure that Maxwell can ramp ultracapacitor production as required to keep pace with the rapidly escalating ultracapacitor demand it expects in coming years. He said that Maxwell will continue to produce its proprietary carbon powder electrode material internally and deliver it to Belton plants for assembly into finished ultracapacitor cells and modules. “The worldwide ultracapacitor market is real, and the demand we foresee in 2007 and beyond requires large-scale production capabilities such as those Belton already has in place,” Balanson said. “Belton’s financial strength and its willingness to commit to making major and continuing investments in factory space, equipment and training to support our cell and module production requirements […]

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