Tuesday, January 8, 2008

LDK Solar Acquires Minority Stake in Sinoma Crucible

XINYU CITY, China and SUNNYVALE, Calif., Jan 07, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, announced today that it has entered into an agreement to acquire 33.5% of Jiangxi Sinoma New Material Co., Ltd. (Sinoma), a Xinyu-based crucible manufacturer, from Xinyu Chengdong Investment and Construction Co., Ltd. for a consideration of approximately RMB 17 million.

Sinoma, founded in May, 2007, completed construction of its plant to manufacture crucibles in September, 2007. The company started test production in November 2007 and subsequently commenced shipping products to its customers. Its current capacity is 30,000 units per year, with a goal of reaching 80,000 units per year by the end of 2008. Sinoma integrated its own manufacturing process, equipment development and new technology research.

"Sinoma's proximity to LDK's wafer factory will significantly reduce the logistical costs typically associated with the acquisition of crucibles from abroad," stated Jack Lai, CFO of LDK Solar. "Domestic-sourced procurement is part of our ongoing initiatives to reduce our manufacturing costs. We expect to be able to secure sufficient crucibles to satisfy our capacity expansion plan and reduce costs of this critical supplemental material in the long-term."

About LDK Solar

LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.

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