Saturday, April 11, 2009

Q-Cells, LDK Solar Form Joint Venture

Ucilia Wang

April 8, 2009 at 12:06 PM

Q-Cells and LDK Solar said they are forming a joint venture to develop large-scale power plants to buyers in Europe and China.

LDK Solar has been supplying silicon wafers to Q-Cells, which turns those wafers into solar cells and sell them to panel makers. Q-Cells said the joint venture would enable both companies to work more closely together and offer better deals to customers. The joint venture, LQ Energy, would contract with panel makers to produce the panels for the power plant projects.

Both companies also figured that they could take advantage of each other’s marketing know-how in their home territories. LDK is based in China while Q-Cells is Germany. The companies said they have started their first, 40-megawatt project in Europe, and are shopping for a buyer.

Both companies have been hit by the economic downturn. Q-Cells has cut sales forecast for 2009 twice since December. LDK has delayed a factory expansion plan and has had to deal with customers who can’t pay as promised.

LDK’s shares on the New York Stock Exchange rose 4 percent in recent trading to reach $7.06 per share.

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