LDK forced to stick to terms of 2008 wafer equipment deal

China's highest arbitration body has handed loss-making PV giant LDK Solar a setback, saying it owes nearly 298m yuan ($48m) to Beijing’s JYT Corporation for a production-equipment deal dating to 2008.

The China International Economic and Trade Arbitration Commission has determined that LDK must abide by the original terms of the agreement it made with JYT, which produces a range of manufacturing equipment for the PV and semiconductor industries.

LDK had agreed to buy furnaces from JYT for making multi- and monocrystalline ingots at its flagship manufacturing facility in Xinyu City, Jiangxi province. But, like many leading PV companies, it now finds itself with more production capacity than it can profitably employ.

“With regret, we were unable to take delivery of the…

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