Saturday, November 15, 2008

Update: LDK Solar signs wafer supply deal with BP Solar, makes remarks about business in October

14 November 2008 By Mark Osborne

LDK Solar said it has signed a three-year wafer supply deal with BP Solar on the heels of sharing their thoughts about the current business environment. The agreement calls for LDK to provide 435MW of multicrystalline wafers to BP and for BP to supply 1680 metric tons of polysilicon to LDK between 2009 and 2011.

LDK said that as of the end of October 2008, it had secured contracts totaling 1.8GW for 2009 (although it is unclear whether the BP deal is included in those projections). This amount totaled more than 100% of LDK's currently planned output for next year. The company's wafer plant is functioning at full capacity so that they can fulfill its customer orders pursuant to the supply agreements.

The company's cash position totals $460 million and available unused credit facilities total in excess of $430 million. LDK will report its financial results for the third quarter, which ended on 30 September 2008, before the opening of the market on Wednesday, 19 November 2008.

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