soared more than 19% Monday after the China-based company struck a 10-year supply contract with a German solar-cell manufacturer.
LDK will, from 2009 through 2018, deliver polysilicon and multicrystalline solar wafers allowing
to make photovoltaic cells with more than 6 gigawatts of overall electrical output.
This agreement -- which Q-Cells says works to "deepen" the companies' existing long-standing relationship -- is of a "take or pay" nature. That means Q-Cells must pay certain fees should it refuse any product deliveries.
Q-Cells will prepay 10% of the silicon value for required expansion financing. And if LDK expands its manufacturing capacity, Q-Cells has the option to buy 30% of the expanded production. Specific financial terms weren't disclosed.
Q-Cells said that deliveries will start with 1,000 metric tons annually in 2009, accelerating to 5,000 tons by 2013.
Shares of LDK were recently up $8.85 to $54.60.