SolarWorld renegotiates silicon supply contract

German manufacturer SolarWorld AG has warned its shareholders a renegotiated supply deal with an ‘important’ silicon supplier will hit its earnings before interest, tax, depreciation and amortization (EBITDA) figure for the first six months of the year.

SolarWorld, which claims to be the largest solar manufacturer outside Asia, today announced it has renegotiated a ‘raw material’ supply agreement with an unnamed supplier which will secure the company’s silicon supply after its capacity was significantly expanded by the acquisition of Bosch’s solar manufacturing assets.

Predicting an EBITDA hit in what SolarWorld said will ‘presumably’ be a non-cash one-off figure in the ‘low double-digit million euros’, the company prepared its shareholders for a €1-4 million (US$1.3-5.4 million) disappointment.

The company announcement was at pains to stress the adjusted interim statement, covering the January-to-June period, will not include the positive effects of a company restructuring completed in February or resulting from the Bosch acquisition.