Bitterfeld-Wolfen, Germany [RenewableEnergyWorld.com] Q-Cells SE and LDK Solar jointly announced at the end of last week that the two companies have reached an agreement to continue their supply contract for solar wafers from 2009 to 2018. Q-Cells had terminated the contract earlier this year.
During recent negotiations, the two companies said that they resolved all differences of opinion over the interpretation of the agreement and neither side will pursue legal action. Q-Cells also agreed not to pursue measures to collect a bank guarantee it said it was owed.
As a result of the new agreement, Q-Cells and LDK Solar have agreed to increase the flexibility of the wafer delivery schedule. A portion of shipments scheduled in the years 2009 to 2011 have been postponed to the period 2012 to 2018.
Q-Cells will receive close to 20% of the total volume of wafers in the current year and at least one third in 2010 and 2011. Q-Cells also has the option to increase these volumes if needed. The total delivery volume for the entire ten-year term remains unchanged at 6 gigawatts of wafers.
At the beginning of November, Q-Cells terminated the agreement that was originally reached in concluded in December 2007, saying that LDK Solar did not fulfill significant contractual obligations. LDK Solar responded by saying the company vigorously disagrees with Q-Cells’ claims.
The original agreement specified the supply of solar wafers on the basis of a contractually fixed amount of silicon totaling 43,000 tonnes for the years from 2009 to 2018, with wafer supplies on the basis of approximately 1,000 tonnes of silicon relating to 2009.
In addition to making delivery more flexible, the two companies have finalized an agreement to expand their cooperation in the areas of cell and module processing. Q-Cells will supply solar cells to LDK Solar on a tolling basis and LDK Solar will supply modules to Q-Cells on the same basis.