LDK Solar Co. Ltd. says the China International Economic and Trade Arbitration Commission (CIETAC) has ruled in its favor regarding a wafer contract dispute between LDK Solar and Canadian Solar.
CEITAC has decided that the wafer supply contracts entered into in October 2007 and June 2008 between the companies are ‘valid and effective through the duration and at terms and conditions related to quantities and prices set forth therein.’
Consequently, CIETAC has ruled that Canadian Solar must pay LDK Solar approximately RMB 248.9 million, including RMB 60 million paid as a deposit and additional cash of RMB 188.9 million. This money is intended to compensate LDK Solar for the loss of profitability. Canadian Solar must also pay an additional RMB 2 million to cover arbitral fees accrued as a result of this proceeding.