Xinyu City, China and Sunnyvale, California [RenewableEnergyAccess.com] Following recent allegations that LDK Solar Co. kept sloppy inventory of it’s solar-grade silicon, the company has announced that the signing of a three-year multicrystalline solar wafer supply contract with China-based Chinalight Solar Co., Ltd.
Pricing is fixed for the terms of the agreement. During this period, LDK Solar will deliver multicrystalline solar wafers to Chinalight valued at approximately ¥ 1 billion [US $133 billion] with delivery commencing in 2008.
“We are very excited to have the opportunity to expand our relationship with Chinalight,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “Chinalight is one of LDK’s longest term customers in China. It also has excellent engineering and manufacturing capabilities and we are pleased to support their growth plans.”
“We are delighted to secure LDK Solar’s high-quality silicon wafers for use in our solar cell products,” stated Sudong Yang, Chairman and CEO of Chinalight Solar Co., Ltd. “We look forward to continuing our relationship with LDK as we grow our solar business in China and international markets.”
LDK has come under fire recently on charges that it violated federal securities laws. A complaint filed on October 10th alleges that LDK’s internal controls were flawed, preventing it from accurately measuring or reporting its inventory. As a result, the company’s inventories were materially overstated, causing inflation in LDK’s assets, earnings and earnings per share (“EPS”) reported during the Class Period.
LDK Solar said that the allegations are untrue and that an internal investigation revealed no serious discrepancies with the company’s inventory.