Artes pays 250 million to Seville

LDK announced today that China International Economic and Trade Arbitration Commission (CIETAC) has stated that it is supplying silicon wafers for LDK Solar and its subsidiaries in October 2007 and June 2008. The terms and conditions concerning quantity and price stated in the contract are valid.

It is reported that LDK has submitted an arbitration application to the China International Economic and Trade Arbitration Commission, claiming that Artes Solar was in violation of the contract supply agreement signed by the two parties and illegally terminated the agreement, and was required to compensate Seiwi for liquidated damages.

The China International Economic and Trade Arbitration Commission stated on December 12, 2012 that, according to the arbitration procedure, Artes should pay approximately 248.9 million yuan to LDK, including a deposit of 60 million yuan already paid and additional cash. 1.889 billion yuan in order to compensate for LDK’s profit loss and the additional arbitration fee of approximately 2 million yuan which was accumulated in this process.

“We are pleased to receive this ruling after more than two years of entering this arbitration process,” said Yu Xingxue, president and chief executive officer of LDK, “LDK is committed to innovation, quality and customer service. Our philosophy is to improve Our production capacity meets the needs of important customers.Unfortunately, unsatisfactory supply contracts caused our factory utilization to be lower than expected.We are committed to providing our customers with the best products and services so that we can overcome the current Global industry challenges."