LDK Solar terminates wafer supply contract for $33.4 million

The two parties entered into the solar wafer supply agreement in 2008. Under the original terms, LDK was to supply wafers to Sumitomo over an eight year period, and Sumitomo made an advanced payment to LDK. No reason was given for the termination.

In a statement released, LDK Solar said it was now assessing the impact the contract termination will have on its 2012 earnings.

"We are pleased to have reached a mutually agreeable conclusion to our 2008 wafer supply contract with Sumitomo," added LDK chairman, Xiaofeng Peng. "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."