Kemet announces third customer-financed capacity agreement
Kemet announced that it has entered into a customer agreement which provides interest-free advance payments to KEMET totaling $6M, which will be used to fund KEMET investments in increased capacity. Together with two similar agreements entered into by the Company on September 4, 2018 and November 26, 2018, respectively, the Company will be receiving interest-free customer advances of $72M to increase its capacity for the manufacture of certain multi-layer ceramic capacitors requested by the customers. For each agreement, the customer has a right of first order regarding the use of the additional capacity funded by its advance. KEMET retains the title and ownership to all equipment purchased using the advance. "We believe that these customer agreements reflect our customers' committed optimism in anticipating long-term market growth and their confidence in KEMET's outstanding product quality and excellent customer service," stated William Lowe, the Company's Chief Executive Officer. "By partnering with KEMET in our capital expansion plans, these customers are able to secure and expand their supply of multi-layer ceramic capacitors despite the current and possible future global supply constraints concerning such products,"