Q-Cells SE has terminated its wafer supply contract signed with LDK Solar, which was entered into in December 2007. According to Q-Cells, LDK Solar did not fulfill its contractual obligations.
The original agreement specified the supply of solar wafers on the basis of a contractually fixed amount of silicon totaling 43,000 tons for 2009 to 2018, with wafer supplies of approximately 1,000 tons of silicon in 2009. Q-Cells says it made a payment of $244.5 million for this agreement in the beginning of 2008.
However, the two companies have differing opinions regarding the validity of the termination of the agreement. Direct discussions and a parallel arbitration process at the International Chamber of Commerce in Paris have not yet resulted in an amicable settlement.
An application by LDK Solar for a temporary injunction to be issued against a drawing down of the bank guarantee was refused by the District Court in Berlin. Q-Cells says it will therefore make use of the possibility to draw down the bank guarantee linked to the payment made.
SOURCE: Q-Cells SE