KEMET Corp signs a new $6 million customer-financed capacity agreement

The customer-financed agreement would be providing the company $6 million in advance payments that are completely interest free.
The move marks the third such agreement signed by the company in a span of a couple of months.

KEMET Corporation (KEMET), an American consumer electronics manufacturing company, has reportedly signed a new customer-financed capacity agreement that would be providing the company $6 million in advance payments which would be completely interest free.
Reports cite, the capital would be used to fund the company's investments in its increased capacity. The announcement marks the third such agreement signed by KEMET within a span of a few months.
According to a press release by KEMET Corporation, along with the two previous agreements the company signed on September 4 and November 26 last year, KEMET would now be receiving interest free advance payments to the tune of approximately $72 million. The capital would be going towards boosting the manufacturing capacity of multilayered ceramic capacitors that are in greater demands.
For each of the three agreements, the customer holds the right to first order pertaining to the use of additional capacity which was funded through its advance. KEMET would be retaining the ownership & title of all the equipment that was purchased through the advance.
The Chief Executive Officer of KEMET, William Lowe, stated that the company believes that the three customer agreements demonstrates its customers' confidence in its excellent product quality as well as its outstanding customer service while also showcasing their optimism in anticipating the market growth in the long-term. Lowe further stated, by partnering with the company in its capital expansion plans, the customers would be able to expand & secure their supply of multilayered ceramic capacitors in spite of the present & potentially future global-supply constraints pertaining to such products.
According to reports, the advance payments are done on a quarterly basis over a period of 18 to 24 months. Following the complete

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