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The major ingot furnace supplier to LDK Solar has terminated a long-term equipment supply agreement and is said to be seeking compensation as the financially stretched integrated PV manufacturer has failed to meet contracted equipment purchasing commitments. As reported by PV-Tech China, Beijing Jingyuntong Technology Co (JYT) has said in a statement to the Stock Exchange (EES) in China that requests to settle payments and deliveries have gone unanswered.
PV-Tech China reported that JYT had been contracted since 2008 to provide JYT660 polysilicon ingot casting furnaces to LDK solar by December 31, 2010. GTAT, formerly GT Solar, had been the initial supplier of choice for LDK Solar.
According to JYT, actual shipments by March 2011 had reached only 119 units, which included 18 in 2008, 101 in 2009 and no shipments in 2010 or 2011. The payment for the delivered 119 furnaces has been reimbursed, yet there are still 461 furnaces in the order with a total value of RMB 1.16 billion.
JYT said in a statement that there had been no progress made in contract negotiations this year. Cancellation of the contract was said to have adverse effects on the company.
There has been an persistent commentary in recent months, especially from the financial community over the financial condition of LDK Solar and its multi-billion dollars of debt and its ability to service those debts.