LDK Solar in 11-year solar deal with Q-Cells

SUNNYVALE, USA & XINYU CITY, CHINA: LDK Solar Co. Ltd, a leading manufacturer of multicrystalline solar wafers, has signed an 11-year processing service agreement to process upgraded metallurgical grade (UMG) solar-grade silicon provided by Germany-based Q-Cells AG into wafers.

Under the terms of the agreement, LDK Solar will process a minimum of 20,000 metric tons of UMG solar-grade silicon in the years 2008-2018, with an option to process an additional 21,000 metric tons during the same period. The processing service agreement is linked to a Memorandum of Understanding (MoU) between the parties for LDK Solar to supply Q-Cells with up to five giga watts of multicrystalline solar wafers via a "take or pay" contract for the 10-year period between 2009-2018.

"We are very pleased to expand our long-standing relationship with Q-Cells with this significant processing and supply arrangement," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "We believe this new long-term collaboration is a testament to the quality of our products and the strength of our customer relationships. We are excited with the opportunity to deliver both Nova wafers produced from UMG-si as well as wafers produced from standard high-purity polysilicon feedstock. And we are pleased to be able to continue to support Q-Cells' growth plans."

"LDK has been a both reliable and extremely dynamic partner and we are pleased to strengthen our business relationship with this company," stated Anton Milner, CEO of Q-Cells AG. "This long-term processing service agreement with LDK linked with additional wafer supplies of up to 5 GW over the next ten years ensures that both companies will be in a strong position to achieve our growth and cost reduction plans."