September 16, 2008

LDK Solar Signs 11-Year Processing Service Agreement With Q-Cells

LDK Solar, a manufacturer of multicrystalline solar wafers, has signed an 11-year processing service agreement to process upgraded metallurgical grade solar-grade silicon provided by Germany-based Q-Cells into wafers.

Under the terms of the agreement, LDK Solar will process a minimum of 20,000 metric tons of upgraded metallurgical grade (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 between the parties for LDK Solar to supply Q-Cells with up to 5GW of multicrystalline solar wafers via a 'take or pay' contract for the 10-year period between 2009 and 2018.

Xiaofeng Peng, chairman and CEO of LDK Solar, said: "We are very pleased to expand our long-standing relationship with Q-Cells with this significant processing and supply arrangement. We believe this new long-term collaboration is a testament to the quality of our products and the strength of our customer relationships."