LDK Solar Co. Ltd. says the China International Economic and Trade Arbitration Commission (CIETAC) has ruled that a wafer equipment supply contract entered into in July 2008 between LDK Solar and JYT Corp. of Beijing (JYT) is ‘valid and effective through the duration and at terms and conditions related to quantities and prices set forth therein.’
Under this disputed contract, LDK Solar had agreed to purchase furnaces used in the manufacturing of multicrystalline and monocrystalline ingots for installation in its manufacturing facilities in Xinyu City, China.
CIETAC has now stated that, by virtue of the arbitration proceedings, LDK must pay JYT approximately RMB 294 million – as well as approximately RMB 3.4 million to cover arbitral fees.
‘With regret, we were unable to take delivery of the ordered furnaces as scheduled from JYT primarily due to slower than expected industry growth and the widely available capacity of other peers,’ explains Xingxue Tong, president and CEO of LDK Solar.
