Malvern, PA – Cabot Corp. and Vishay Intertechnology Inc. have achieved an amicable resolution of the pending legal dispute relating to their long-term tantalum supply contracts by agreeing to amend the contracts.
The minimum total value of the contracts is approximately $425 million. In addition, one of the supply contracts has been extended through 2006. The amended agreements should continue to provide substantial value and benefit to both parties.
Spokespersons for the two companies stated: “We have worked together to negotiate amended agreements which recognize the realities of today’s market conditions and confirm Vishay’s obligation to purchase specified quantities of product at regular intervals throughout the terms of the contracts. These amended agreements bring stability to Cabot’s tantalum business and provide Vishay with a reliable source of tantalum for its capacitor business.”