LDK Solar and Sumitomo Agree To Terminate Contract
XINYU CITY, China and SUNNYVALE, Calif., Nov. 6, 2012
XINYU CITY, China and SUNNYVALE, Calif., Nov. 6, 2012 /PRNewswire/ -- LDK
Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated
manufacturer of photovoltaic (PV) products, today announced that it has
reached an agreement with Japan-based Sumitomo Corporation to terminate their
long-term solar wafer supply agreement.
Under the terms of the agreement, originally signed in September 2008, LDK
Solar was to supply multicrystalline silicon wafers to Sumitomo over an
eight-year period, beginning in 2009 and extending through 2016. As part of
the original agreement, Sumitomo made an advanced payment representing a
portion of the contract value to LDK Solar.
In exchange for LDK's agreement to terminate the supply agreement, Sumitomo
has agreed to pay LDK Solar a settlement amount totaling $33.4 million.
"We are pleased to have reached a mutually agreeable conclusion to our 2008
wafer supply contract with Sumitomo," stated Xiaofeng Peng, Chairman of LDK
Solar. "We look forward to establishing a new commercial relationship with
Sumitomo. We will continue to work closely with our customers and partners as
we navigate the current industry challenges."
LDK Solar is assessing the financial impact on its full year 2012 earnings of
the Sumitomo termination and related contract termination charges.
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated
manufacturer of photovoltaic (PV) products. LDK Solar manufactures
polysilicon, mono and multicrystalline ingots, wafers, cells, modules,
systems, power projects and solutions. LDK Solar's headquarters and principal
manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City,
Jiangxi Province in the People's Republic of China. LDK Solar's office in the
United States is located in Sunnyvale, California. For more information about
LDK Solar and its products, please visit www.ldksolar.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact in this press
release are forward-looking statements, including but not limited to, LDK
Solar's ability to raise additional capital to finance its operating
activities, the effectiveness, profitability and marketability of its
products, the future trading of its securities, the ability of LDK Solar to
operate as a public company, the period of time during which its current
liquidity will enable LDK Solar to fund its operations, its ability to protect
its proprietary information, the general economic and business environment and
conditions, the volatility of LDK Solar's operating results and financial
condition, its ability to attract and retain qualified senior management
personnel and research and development staff, its ability to timely and
efficiently complete its ongoing projects, and other risks and uncertainties
disclosed in LDK Solar's filings with the Securities and Exchange Commission.
These forward-looking statements involve known and unknown risks and
uncertainties and are based on information available to LDK Solar's management
as of the date hereof and on its current expectations, assumptions, estimates
and projections about LDK Solar and the PV industry. Actual results may differ
materially from the anticipated results because of such and other risks and
uncertainties. LDK Solar undertakes no obligation to update forward-looking
statements to reflect subsequent events or circumstances, or changes in its
expectations, assumptions, estimates and projections except as may be required
SOURCE LDK Solar Co., Ltd.
Contact: Lisa Laukkanen, The Blueshirt Group for LDK Solar, +1-415-217-4967,
firstname.lastname@example.org ; Jack Lai, Executive VP and CFO, LDK Solar Co., Ltd.,
+1-408-245-8801, IR@ldksolar.com ; Sumitomo Corporation, Makoto Tsurutani,
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