LDK in $533M supply deal with Canadian Solar

Xinyu City, China-based LDK Solar (NYSE: LDK) announced a contract today valued at $533 million to supply its wafers to Jiangsu's Canadian Solar (Nasdaq: CSIQ).

Incorporated in Canada, all of Canadian Solar's manufacturing operations are in China.

Under the three year contract, LDK expects to deliver its multicrystalline solar wafers starting in 2008. The company said the total contracted delivery for 2008 would be 50 megawatts.

"This agreement is built on the four-year frame contract we signed with LDK Solar a year ago. LDK is one of our major suppliers and we value our relationship," said Shawn Qu, chairman and CEO of Canadian Solar.

"This new contract helps us to further strengthen our pipeline of silicon wafer supply in preparation for our expected continued strong growth."

LDK's stock has taken a hit since its former financial controller made allegations earlier this month that the company has poor inventory controls (see Mishaps and murmurs).

The company has signed a handful of deals since the accusations came to light, including a three year wafer supply contract with Beijing's Chinalight Solar (see LDK Solar continues to make deals).