* Settlement amount below expectations - MEMC
* MEMC sees material benefit to operating income in Q3
* MEMC to acquire Evonik's trichlorosilane facility
Sept 5 Silicon wafer maker MEMC Electronic
Materials Inc said it agreed to pay 70 million euros to
Evonik Industries to settle a dispute over the cancellation of a
contract to supply trichlorosilane to MEMC's Italian polysilicon
MEMC idled its facility in Merano, Italy, under a
restructuring plan last year, resulting in the termination of
two long-term take-or-pay supply agreements with Evonik.
MEMC said it expects to recognize a material benefit to its
operating income in the ongoing quarter as the settlement amount
was below its estimate. The payment will settle all obligations
under the terminated supply agreements, MEMC said.
As part of the agreement, MEMC will also acquire Evonik's
trichlorosilane production plant located on MEMC's Merano site,
the U.S. company said.
Trichlorosilane is a key chemical used in the manufacturing
of polysilicon, the primary raw material for making most solar
Shares of the Missouri-based company were flat at $2.98 on
Wednesday morning on the New York Stock Exchange.