LDK Solar Co., Ltd. (NYSE:LDK) and Q-Cells SE (QCE.DE) jointly announced an agreement to continue their supply contract for solar wafers from 2009 to 2018.
In November, Q-Cells announced it had terminated the supply agreement, stating that LDK Solar "did not fulfil significant contractual obligations." Q-Cells said it intended to reclaim US$244 million in prepayments through a bank guarantee.
The latest release, states that negotiations resolved differences of opinion over the interpretation of the agreement and neither side will pursue legal action. Q-Cells also agreed to no longer pursue measures to collect the bank guarantee. Joint business activities between the two companies remain unchanged.
LDK Solar (www.ldksolar.com) and Q-Cells have agreed to increase the flexibility of the delivery schedule. Flexible pricing based on market levels and Q-Cells’ preferred customer status will apply for the entire remainder of the contract term.
A portion of shipments scheduled in the years 2009 to 2011 have been postponed to the period 2012 to 2018. Q-Cells will receive around 20% in the current year and at least one third of the originally agreed volumes in 2010 and 2011. Q-Cells also has the option to increase these volumes if needed.
The total delivery volume for the entire ten-year term of the contract remains unchanged at approximately 6 gigawatts (GW). In addition to the amendment, the parties have finalized an agreement to expand their cooperation in the areas of cell and module processing. Q-Cells will supply solar cells to LDK Solar on a tolling basis and LDK Solar will supply modules to Q-Cells on the same basis.
