Greentech Lead Canada: Canadian Solar has won the court case against LDK Solar on wafer supply contracts executed between the companies in October 2007 and June 2008.
Jiangsu Suzhou Intermediate Court has dismissed the request by LDK Solar to enforce the arbitration award decision by the former Shanghai branch of the China International Economic and Trade Arbitration Commission (CIETAC) in the amount of RMB 248.9 million (approximately US$ 40.1 million).
The arbitration award relates to wafer supply contracts entered into between Canadian Solar and LDK in October of 2007 and June of 2008, and subsequently terminated.
Shawn Qu, chairman and chief executive officer, Canadian Solar, said, “We are delighted with the Jiangsu Suzhou Intermediate Court’s decision in our favor. 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.”
LDK Solar had announced the arbitration award in December 2012. During the arbitration CIETAC stated that the wafer supply contracts entered into in October 2007 and June 2008 between LDK Solar and Canadian Solar (CSIQ) 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 CIETAC stated that by virtue of the arbitration proceedings Canadian Solar shall pay to LDK Solar an amount of approximately RMB 248.9M, including RMB 60M paid as a deposit and additional cash of RMB 188.9M, to compensate LDK Solar for the loss of profitability as well as approximately an additional RMB 2M to cover arbitral fees accrued as a result of this proceeding.