Canadian Solar has won a court case relating to an alleged breach of contract concerning its wafer supply contracts with LDK Solar.
In 2010 LDK Solar filed an arbitration request and a lawsuit with the China International Economic and Trade Arbitration Commission (CIETAC) in Shanghai, China, regarding the company’s allegation that Canadian Solar owes compensation as a result of a breach of a three-year wafer supply agreement signed in October 2007 and a 10-year take-or-pay supply agreement signed by the two companies in 2008 and the illegal termination of the agreements.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The contract stipulated that Canadian Solar purchase set amounts of materials at specific prices for the 10-year period. LDK claimed that Canadian Solar failed to perform its purchase obligations and stopped payment before the contract ended.
However, the Jiangsu Suzhou Intermediate Court has dismissed LDK’s request to enforce the US$40.1 million arbitration award decision by CIETAC.
In response to the court’s decision, Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar, said: “We are delighted with the Jiangsu Suzhou Intermediate Court's decision in our favour. We believe we have conducted our business properly at all times and we will continue to advocate cooperation rather than confrontation within the solar industry.”