PV manufacturer SolarWorld has agreed to pay a penalty payment to an unidentified polysilicon supplier for changing terms on a long-term supply deal.

In February, 2014 the company agreed to pay a “double-digit million Euro amount to another polysilicon supplier. SolarWorld said that the latest restructured deal would also result in a “low double-digit million Euro amount” being paid.

The new supply deal arrangements were not disclosed by SolarWorld but said that the deal would strengthen its “silicon supply security under competitive conditions.”

The penalty payment is expected to be a non-cash transaction as polysilicon suppliers typically hold large cash deposits from customers but would be reflected in SolarWorld’s EBITDA financials of its first-half year interim report for 2014.

US-based polysilicon supplier, Hemlock Semiconductor had filed suit against SolarWorld in March 2013 over a disputed supply contract discrepancy which was said to be valued at US$83 million.