LDK Solar terminate two long-term solar wafer supply agreements
LDK Solar Co., Ltd. (LDK Solar), a manufacturer of photovoltaic (PV) products, has announced that it has reached an agreement with Japan-based Sumitomo Corporation to terminate their long-term solar wafer supply agreement.Under the terms of the agreement, originally signed in September 2008, LDK Solar was to supply multicrystalline silicon wafers to Sumitomo over an eight-year period, beginning in 2009 and extending through 2016. As part of the original agreement, Sumitomo made an advanced payment representing a portion of the contract value to LDK Solar.In exchange for LDK’s agreement to terminate the supply agreement, Sumitomo has agreed to pay LDK Solar a settlement amount totaling $33.4 million.“We are pleased to have reached a mutually agreeable conclusion to our 2008 wafer supply contract with Sumitomo,” stated Xiaofeng Peng, Chairman of LDK Solar. “We look forward to establishing a new commercial relationship with Sumitomo. We will continue to work closely with our customers and partners as we navigate the current industry challenges.” LDK Solar have also announced that it has reached an agreement with a Europe-based PV customer to terminate their long-term solar wafer supply agreement.Also originally signed in 2008, LDK Solar was to supply multicrystalline silicon wafers over a ten-year period. As part of the original agreement, the PV customer made an advanced payment representing a portion of the contract value to LDK Solar.As part of the settlement, the parties mutually agreed to terminate the supply agreement, and that LDK Solar will receive approximately $37 million. “We will continue to work closely with our customers and partners in the currently challenging environment for the PV industry.” stated Xingxue Tong, President and CEO of LDK Solar.