MANILA, Philippines - Subsidiaries of Lopez-led First Philippine Holdings Corp. (FPHC) have sought the mediation of the International Chamber of Commerce (ICC) following a disagreement with its Korean partner in its solar power business.
“First PV Ventures Corp. and First Philec Nexolon Corp. (FPNC) have filed a request for arbitration of their dispute with Nexolon Co., Ltd with the ICC,” FPHC said in a disclosure.
“Both FPNC and Nexolon are alleging breaches by the other party of their wafer slicing supply and services agreement,” it added.
FPNC is a joint venture firm set up by First PV and Nexolon to slice silicon wafers for Nexolon.
In 2010, First PV signed an agreement with Nexolon of Korea to put up a 400-megawatt (MW) solar wafer-slicing facility in Batangas.
The plant slices silicon wafer, which is the main component in a solar photovoltaic cell as it captures the sun’s rays and converts it into useable electricity.
“FPNC has sought arbitration in order to enforce its rights under the agreement, including the payment of unpaid sums of money by Nexolon, and for such other reliefs as the arbitration tribunal shall deem appropriate,” the company said.
FPNC holds a wire saw technology capable of producing up to 155 micron-thin silicon wafers, and fully-automated cleaning systems and automated inspection systems.
First PV said it joined the arbitration as a party to protect its rights under the joint venture deal with Nexolon.
First PV is a wholly-owned subsidiary of First Philippine Electric Corp., which is the manufacturing subsidiary of listed FPHC.
Aside from engaging in the solar power business, FPHC also hold stakes in Energy Development Corp., Manila Electric Co., First Gen Corp. and Rockwell Land Corp.