LDK Solar Co., a Chinese maker of silicon wafers used in solar power cells, said it sued Canadian Solar Inc. for canceling a contract.

Canadian Solar breached a 10-year supply agreement it made in 2008 with LDK Solar that required it to buy specific amounts of materials at set prices, LDK Solar said in a release today.

“LDK Solar believes the 10-year contract is legal and remains effective,” the company said.

Canadian Solar, which makes most of its products in China and moved its headquarters to Kitchener, Ontario, from Jiangsu, China, last year, plans to complete a module-making facility in Ontario early next year that will produce 200 megawatts of panels annually.

LDK Solar, which is based in Xinyu City, China and operates from Sunnyvale, California, said it also sought an arbitration hearing before the China International Economic and Trade Arbitration Commission in Shanghai.

Daniel Heck of Canadian Solar declined to comment immediately on the lawsuit.

LDK Solar American depositary receipts, each equal to one ordinary share, fell 3 cents to $6.81 yesterday. Canadian Solar rose 44 cents to $11.75 in Nasdaq Stock Market composite trading