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LDK, Q-Cells Dispute 10-Yr Contract
German cell maker Q-Cells SE (QCE.F) has terminated a December 2007 solar wafer supply agreement with Jiangxi-based LDK Solar (NYSE:LDK), claiming that LDK failed to fulfill contractual obligations, Q-Cells announced November 2. LDK responded the same day that the unilateral termination was without basis.
Q-Cells warned in its announcement that it may reclaim a payment of $244.5 million made to LDK at the beginning of 2008. LDK's application for an injunction against Q-Cells drawing down of LDK's bank guarantee linked to this payment has been rejected by Berlin's District Court, said Q-Cells.
The original agreement between the companies specified that LDK would deliver solar wafers on the basis of a fixed amount of 43,000 metric tons (MT) of silicon to Q-Cells from 2009 to 2018, with wafer supplies on the basis of 1,000MT in 2009, Q-Cells said.
LDK claims that it has manufactured the requisite quantities of wafers to ship to Q-Cells, made deliveries during the first quarter of 2009 pursuant to Q-Cells' purchasing orders, and suspended deliveries following March 2009 at Q-Cells' request in order to negotiate an amendment to their supply agreement.
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