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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.

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."