LDK announce arbitration against Canadian Solar
LDK Solar has announced that the China International Economic and Trade Arbitration Commission (CIETAC) stated that the wafer supply contracts entered into in October 2007 and June 2008 between LDK Solar and Canadian Solar (CSI) and its China-based subsidiary affiliate are valid and effective through the duration and at terms and conditions related to quantities and prices set forth therein.
On December 12, 2012 CIETAC stated that by virtue of the arbitration proceedings CSI shall pay to LDK Solar an amount of approximately RMB 248.9 million, including RMB 60 million paid as a deposit and additional cash of RMB 188.9 million, to compensate LDK Solar for the loss of profitability as well as approximately an additional RMB 2 million to cover arbitral fees accrued as a result of this proceeding.
"We are pleased to receive this award after entering into this arbitration proceeding more than two years ago," stated Xingxue Tong, President and CEO of LDK Solar. "LDK Solar is committed to innovation, quality, and customer service. Our philosophy is to invest in building our manufacturing capacity to the right size for our valued customers. Regretfully, underperforming supply contracts contributed to our lower-than-expected plant utilization ratio. We strive to offer the best products and services to our customers so that together we can overcome the current global industry challenges," concluded Mr. Tong.
