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.
Showing posts with label LDK Solar. Show all posts
Showing posts with label LDK Solar. Show all posts
Saturday, April 11, 2009
Tuesday, January 20, 2009
LDK Solar Starts Polysilicon Project
XINYU, Jan 19, 2009 (SinoCast Daily Business Beat via COMTEX) --Chinese solar wafer producer LDK Solar Co., Ltd. recently held an ceremony for the operation of the Phase I of its 16,000-ton polysilicon project in Xinyu City, Jiangxi Province, East China.
The project that broke earth in February 2008 adopts the world-class modified Siemens processes, and it is expected to rank top worldwide by production cost and energy consumption after fully operation.
The firm is to start running the Phase II, which will be capable of producing 5,000 tons of polysilicon per year and is part of a 15,000-ton plant, in mid-2009.
LDK Solar targets to have annual polysilicon production capacity of 16,000 tons at 2009-end, and it will use all the output to make solar wafer, in a bid to secure raw material supply and lower production cost. Besides, the rising polysilicon production capacity will help the company materialize the target of become capable of producing 3,200 megawatts of solar wafer in 2010.
The project that broke earth in February 2008 adopts the world-class modified Siemens processes, and it is expected to rank top worldwide by production cost and energy consumption after fully operation.
The firm is to start running the Phase II, which will be capable of producing 5,000 tons of polysilicon per year and is part of a 15,000-ton plant, in mid-2009.
LDK Solar targets to have annual polysilicon production capacity of 16,000 tons at 2009-end, and it will use all the output to make solar wafer, in a bid to secure raw material supply and lower production cost. Besides, the rising polysilicon production capacity will help the company materialize the target of become capable of producing 3,200 megawatts of solar wafer in 2010.
Tuesday, January 13, 2009
LDK Solar delays operation of polysilicon projects
BEIJING, Jan 13, 2009 (Xinhua via COMTEX) -- China's wafer manufacturer LDK Solar Co., Ltd. (LDK.NYSE) recently delayed the operation of two polysilicon projects for half a year, involving a production capacity of 6,000 tons.
So the two polysilicon projects will come into operation in the mid of 2009.
Agreements with suppliers of steel, cement and other construction materials need be re-signed when the prices have slumped, and it also takes time to re-check the polysilicon production facilities after some similar facilities in China incurred environmental protection and production accidents continuously, said Yao Feng, spokesman of LDK Solar, when talking about the delay.
It's not necessary either to hurry through the construction project now as the price of polysilicon plunged from 400 U.S. dollars per kg to 150 U.S. dollars per kg, Yao added.
According to a senior official with LDK Solar, some of its customers also asked to postpone the shipment from 2008 to 2009.
LDK Solar had planned to expand the annual production capacity of polysilicon by 6,000 tons within 2008. Included are 5,000 tons from a 15,000-t/y polysilicon project and 1,000 tons from a 1,000-t/y polysilicon project.
Now, the minor one is in trial production but not put in full operation and the bigger one is scheduled to operate in the mid of 2009.
So the two polysilicon projects will come into operation in the mid of 2009.
Agreements with suppliers of steel, cement and other construction materials need be re-signed when the prices have slumped, and it also takes time to re-check the polysilicon production facilities after some similar facilities in China incurred environmental protection and production accidents continuously, said Yao Feng, spokesman of LDK Solar, when talking about the delay.
It's not necessary either to hurry through the construction project now as the price of polysilicon plunged from 400 U.S. dollars per kg to 150 U.S. dollars per kg, Yao added.
According to a senior official with LDK Solar, some of its customers also asked to postpone the shipment from 2008 to 2009.
LDK Solar had planned to expand the annual production capacity of polysilicon by 6,000 tons within 2008. Included are 5,000 tons from a 15,000-t/y polysilicon project and 1,000 tons from a 1,000-t/y polysilicon project.
Now, the minor one is in trial production but not put in full operation and the bigger one is scheduled to operate in the mid of 2009.
Tuesday, January 6, 2009
LDK Solar Lowers Sales Outlook, Delays Factory Plan
January 5, 2009
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
Thursday, December 4, 2008
China solar wafer supplier LDK urged to cut prices
Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Thursday 4 December 2008]
Gintech Energy, a Taiwan-based maker of crystalline silicon solar cells, has asked LDK Solar, a China-based producer of solar-grade crystalline silicon wafers, to lower its product prices to facilitate the existing cooperation between LDK and Taiwan's solar cell makers, according to industry sources.
Gintech president and COO Ellick Liao made the request to LDK president and COO Xingxue Tong at Tong's visit to Gintech on December 3, the sources indicated. As Taiwan-based makers of solar cells account for about 50% of LDK's total wafer shipments, LDK's price reduction is important to maintain the existing supply chain between LDK and its Taiwan clients, the sources quoted Liao as saying. Tong basically agreed with Liao, but did not said whether LDK would lower prices, the sources noted.
Taiwan makers of solar cells have increasingly suffered from continued drops in spot market price of photovoltaic (PV) modules since November 2008, and therefore strongly hope for reduction in procurement costs of wafers through negotiation with their contract suppliers, of which LDK is a major one, the sources pointed out.
The PV module price drops have stemmed from high inventory levels in main markets: 1.5 months in Germany and 2-3 months in Spain, the sources noted. A reasonable inventory level is two weeks, the sources explained.
To cope with the falling prices of PV modules, Taiwan solar cell makers will have to accept cash-on-delivery orders only, control inventory levels to no more than two weeks, create product differentiation, and enhance sale-related services, the sources cited Liao as suggesting.
Gintech Energy, a Taiwan-based maker of crystalline silicon solar cells, has asked LDK Solar, a China-based producer of solar-grade crystalline silicon wafers, to lower its product prices to facilitate the existing cooperation between LDK and Taiwan's solar cell makers, according to industry sources.
Gintech president and COO Ellick Liao made the request to LDK president and COO Xingxue Tong at Tong's visit to Gintech on December 3, the sources indicated. As Taiwan-based makers of solar cells account for about 50% of LDK's total wafer shipments, LDK's price reduction is important to maintain the existing supply chain between LDK and its Taiwan clients, the sources quoted Liao as saying. Tong basically agreed with Liao, but did not said whether LDK would lower prices, the sources noted.
Taiwan makers of solar cells have increasingly suffered from continued drops in spot market price of photovoltaic (PV) modules since November 2008, and therefore strongly hope for reduction in procurement costs of wafers through negotiation with their contract suppliers, of which LDK is a major one, the sources pointed out.
The PV module price drops have stemmed from high inventory levels in main markets: 1.5 months in Germany and 2-3 months in Spain, the sources noted. A reasonable inventory level is two weeks, the sources explained.
To cope with the falling prices of PV modules, Taiwan solar cell makers will have to accept cash-on-delivery orders only, control inventory levels to no more than two weeks, create product differentiation, and enhance sale-related services, the sources cited Liao as suggesting.
Wednesday, November 19, 2008
LDK Solar Reports Financial Results for Third Quarter 2008
XINYU CITY, China and SUNNYVALE, Calif., Nov 19, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd., a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the third quarter ended September 30, 2008. All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Taiwan silicon wafer firm sees '09 capacity up 40-50 pct
HSINCHU, Taiwan, Nov 18 (Reuters) - Sino-American Silicon Products Inc, Taiwan's top maker of silicon wafers for solar cells, said on Tuesday it will boost its capacity 40-50 percent next year, amid booming demand for alternative energy.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
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.
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.
Friday, November 7, 2008
Solar Power Generation Cost to Drop to CNY1 per KWH in 2012
WUXI, Nov 07, 2008 (SinoCast via COMTEX) -- China's generation cost of solar power will reach CNY 1 per KWH in 2012, predicted Shi Zhengrong, board chairman and CEO of Suntech Power.
Peng Xiaofeng, board chairman and CEO of solar wafer manufacturer LDK Solar Co., Ltd. (NYSE: LDK), declares that the financial crisis will further lower the company's procurement and labor costs by 40% to 50%.
And China Guodian Corporation (CGDC) has announced the foundation of Guodian Ningxia Solar Energy Company, to build polycrystalline silicon and thin-film cell projects, with a designed production capacity of 10,000 tons per year.
Moreover, Huaneng New Energy Industrial Co., Ltd. (HNEIC) General Manager Zhao Shiming releases that the generation cost of wind power has dropped to CNY 0.5 to CNY 0.6 per KWH, and that of thermal power is CNY 0.2 to CNY 0.3 per KWH.
Shanghai Electric Group Co., Ltd. (SEHK: 2727) Board Chairman and CEO Xu Jianguo reveals that wind power equipment has contributed to 50% of the company's sales revenues, and 60% of its profit.
Peng Xiaofeng, board chairman and CEO of solar wafer manufacturer LDK Solar Co., Ltd. (NYSE: LDK), declares that the financial crisis will further lower the company's procurement and labor costs by 40% to 50%.
And China Guodian Corporation (CGDC) has announced the foundation of Guodian Ningxia Solar Energy Company, to build polycrystalline silicon and thin-film cell projects, with a designed production capacity of 10,000 tons per year.
Moreover, Huaneng New Energy Industrial Co., Ltd. (HNEIC) General Manager Zhao Shiming releases that the generation cost of wind power has dropped to CNY 0.5 to CNY 0.6 per KWH, and that of thermal power is CNY 0.2 to CNY 0.3 per KWH.
Shanghai Electric Group Co., Ltd. (SEHK: 2727) Board Chairman and CEO Xu Jianguo reveals that wind power equipment has contributed to 50% of the company's sales revenues, and 60% of its profit.
Thursday, October 30, 2008
LDK Solar signs wafer supply contract with Helios
October 30, 2008
XINYU CITY, CHINA & SUNNYVALE, USA: LDK Solar Co. Ltd, a leading manufacturer of multicrystalline solar wafers, has signed a seven-year contract to supply multicrystalline solar wafers to Italy-based Helios Technology.
Under the terms of the agreement, LDK Solar will deliver approximately 70 MW of multicrystalline silicon solar wafers over a seven-year period, commencing in 2009 and extending through 2015. As part of the agreement, Helios Technology will make a prepayment representing a portion of the contract value to LDK Solar.
"We are very pleased to announce this long-term wafer supply contract with Helios Technology," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "As we continue to experience strong demand for our solar wafers, this particular agreement further expands LDK's presence in Europe and represents the increasing geographic diversity of our customer base."
XINYU CITY, CHINA & SUNNYVALE, USA: LDK Solar Co. Ltd, a leading manufacturer of multicrystalline solar wafers, has signed a seven-year contract to supply multicrystalline solar wafers to Italy-based Helios Technology.
Under the terms of the agreement, LDK Solar will deliver approximately 70 MW of multicrystalline silicon solar wafers over a seven-year period, commencing in 2009 and extending through 2015. As part of the agreement, Helios Technology will make a prepayment representing a portion of the contract value to LDK Solar.
"We are very pleased to announce this long-term wafer supply contract with Helios Technology," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "As we continue to experience strong demand for our solar wafers, this particular agreement further expands LDK's presence in Europe and represents the increasing geographic diversity of our customer base."
Saturday, October 18, 2008
LDK Solar inks 90-megawatt supply contract
October 17, 2008
NEW YORK (AP) - LDK Solar Co., which makes solar wafers, said Friday it has signed a three-year "take-or-pay" contract to supply solar wafers to a U.S.-based energy company.
Financial terms of the deal, as well as the customer's name, were not disclosed.
China-based LDK Solar will supply about 90 megawatts of silicon solar wafers over three years starting in 2009. The customer will supply at least 300 metric tons of polysilicon, and make a down payment.
NEW YORK (AP) - LDK Solar Co., which makes solar wafers, said Friday it has signed a three-year "take-or-pay" contract to supply solar wafers to a U.S.-based energy company.
Financial terms of the deal, as well as the customer's name, were not disclosed.
China-based LDK Solar will supply about 90 megawatts of silicon solar wafers over three years starting in 2009. The customer will supply at least 300 metric tons of polysilicon, and make a down payment.
Tuesday, October 14, 2008
LDK says polysilicon plant on track to meet goals
Associated Press 10.14.08
NEW YORK - China-based LDK Solar Co., which makes solar power products, said Tuesday it is on track to meet its production targets at a polysilicon plant it is currently building.
LDK said it still plans to produce between 5,000 and 7,000 metric tons of the material in 2009 at a plant that will have annual capacity of 15,000 metric tons.
The company said a separate 1,000 metric ton plant has been completed and is the process of being commissioned for use. It plans to update the expected production levels for the fourth quarter in a separate announcement.
NEW YORK - China-based LDK Solar Co., which makes solar power products, said Tuesday it is on track to meet its production targets at a polysilicon plant it is currently building.
LDK said it still plans to produce between 5,000 and 7,000 metric tons of the material in 2009 at a plant that will have annual capacity of 15,000 metric tons.
The company said a separate 1,000 metric ton plant has been completed and is the process of being commissioned for use. It plans to update the expected production levels for the fourth quarter in a separate announcement.
Sunday, September 28, 2008
ABB wins $36-million solar power order in China
Thursday, Sep 25, 2008
Systems and equipment for Asia's largest solar products production plant
Zurich, Switzerland, Sept. 25, 2008 - ABB, the leading power and automation technology group, has won a contract with LDK Solar worth more than $36 million to supply electrical systems, equipment and related engineering and project management services for a new production plant in Xinyu City, China.
When completed, the facility in Jiangxi province will be Asia's largest polysilicon plant, with an annual capacity of 15,000 metric tons. Polysilicon is used in the production of monocrystalline and multicrystalline solar wafers, the principal raw material used to produce the solar cells that convert sunlight into electricity.
As the main electrical contractor (MEC) for the project, ABB will provide equipment and services for the electrification of the plant to ensure a safe, reliable supply of power. The scope of supply includes low and medium voltage switchgear, distribution transformers and fully insulated tubular busbars, as well as project design, engineering and other services.
"ABB's power and process know-how, combined with our unparalleled scope of supply, provide the comprehensive approach needed to serve as the Main Electrical Contractor for our customers," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "Our delivery to LDK will ensure consistent, reliable power for their new production plant."
The first production line of the new plant is scheduled for completion in the fourth quarter of 2008, and 5,000 to 7,000 metric tons of polysilicon are expected to be produced in 2009.
LDK Solar Co. Ltd., is a leading manufacturer of multicrystalline solar wafers, and sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact.
The ABB Group of companies operates in around 100 countries and employs more than 115,000 people.
Systems and equipment for Asia's largest solar products production plant
Zurich, Switzerland, Sept. 25, 2008 - ABB, the leading power and automation technology group, has won a contract with LDK Solar worth more than $36 million to supply electrical systems, equipment and related engineering and project management services for a new production plant in Xinyu City, China.
When completed, the facility in Jiangxi province will be Asia's largest polysilicon plant, with an annual capacity of 15,000 metric tons. Polysilicon is used in the production of monocrystalline and multicrystalline solar wafers, the principal raw material used to produce the solar cells that convert sunlight into electricity.
As the main electrical contractor (MEC) for the project, ABB will provide equipment and services for the electrification of the plant to ensure a safe, reliable supply of power. The scope of supply includes low and medium voltage switchgear, distribution transformers and fully insulated tubular busbars, as well as project design, engineering and other services.
"ABB's power and process know-how, combined with our unparalleled scope of supply, provide the comprehensive approach needed to serve as the Main Electrical Contractor for our customers," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "Our delivery to LDK will ensure consistent, reliable power for their new production plant."
The first production line of the new plant is scheduled for completion in the fourth quarter of 2008, and 5,000 to 7,000 metric tons of polysilicon are expected to be produced in 2009.
LDK Solar Co. Ltd., is a leading manufacturer of multicrystalline solar wafers, and sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact.
The ABB Group of companies operates in around 100 countries and employs more than 115,000 people.
Thursday, September 25, 2008
LDK Solar Closes Sale Of 4.8M Shrs At $41.75 Each
September 24, 2008
LDK Solar this afternoon said it completed the sale of 4.8 million American depositary shares at $41.75 a piece, for total proceeds to the company of $192,384,000. The deal had been priced on Friday. LDK said it will use 60% of the proceeds to fund construction of its polysilicon plant, 30% to fund the expansion of wafer production and 10% for general corporate purposes.
Unfortunate timing for the participants in the deal: LDK today rose $1.50, or 4.3%, to $36.42, after trading sharply lower in the previous two sessions. Investors who bought in at the deal price are sitting on a loss of $5.33 a share, or nearly 13%.
LDK Solar this afternoon said it completed the sale of 4.8 million American depositary shares at $41.75 a piece, for total proceeds to the company of $192,384,000. The deal had been priced on Friday. LDK said it will use 60% of the proceeds to fund construction of its polysilicon plant, 30% to fund the expansion of wafer production and 10% for general corporate purposes.
Unfortunate timing for the participants in the deal: LDK today rose $1.50, or 4.3%, to $36.42, after trading sharply lower in the previous two sessions. Investors who bought in at the deal price are sitting on a loss of $5.33 a share, or nearly 13%.
Saturday, September 20, 2008
LDK Wants $200M More for Manufacturing
The Chinese solar-wafer company said it would offer additional American depositary share, after raising $400 million in convertible notes in April, to build its planned silicon plants and expand wafer production.
by: Jennifer Kho September 19, 2008
LDK Solar Co. Ltd. (NYSE: LDK) announced Friday it plans to sell $200.4 million in American depositary shares to raise more money for manufacturing.
The Xinyu City, China-based solar-wafer manufacturer said it would offer 4.8 million American depositary shares at $41.75 each. In filings with the U.S. Securities and Exchange Commission, the company didn't disclose how much it expects to net from the sale.
LDK said it plans to use approximately 60 percent of the net proceeds to build a silicon-manufacturing plant, approximately 30 percent to expand its wafer-production capacity and the final 10 percent for "general corporate activities."
The company is constructing two silicon factories – a 1,000-ton plant and a 15,000-ton plant – and in April already raised $400 million to build the plants and support a planned wafer-capacity expansion.
The company, which said it has grown its multicrystalline solar-wafer production capacity from 880 megawatts in June to 1 gigawatt in August, expects to reach an annual capacity of approximately 1.1 gigawatts by the end of the year and 2 gigawatts by the end of next year. LDK also plans to begin producing monocrystaline wafers, which convert sunlight into electricity more efficiently than multicrystalline wafers, in the fourth quarter of this year and to reach about 100 megawatts of annual capacity by the end of 2008 and 200 megawatts by the end of 2009.
At that time, Hakan Telenius, organizer of the LDK Investor Group, said he expected the money would be sufficient for the rest of 2008, and that the company "would only raise more if they were not able to deliver on 2009 numbers."
LDK, which was founded in 2005 and made an initial public offering last year, didn't respond to calls and emails asking why it needs more money to complete its plants or whether it expects a delay.
But in an SEC filing, the company said its estimated total cost to build the polysilicon plant (made up of two factories in the same location) is approximately $1.3 billion.
The company in April said it planned to spend $1.2 billion on its first two silicon plants, along with $600 million to expand its wafer production.
At the time, LDK said it would finance the bulk of the cost through its operations, including expected net profits of $200 million in 2008 and $400 million in 2009, as well as about $1 billion in expected customer deposits for long-term wafer contracts for this year and next year.
The company expected a shortfall of at least $200 million, which investors hoped would be more than satisfied by the $400 million it raised in April.
In July, LDK announced that it had completed the first phase of construction on its smaller silicon plant and was on track to begin production by October. But it still was awaiting more equipment to complete the plant, which it expected to happen at the end of the year.
It also planned to complete the first phase of its larger silicon plant by the end of this year.
In a research note in June, Piper Jaffray analyst Jesse Pichel wrote that he remains "cautious on LDK's ability to ramp its polysilicon plant on time," although he expected the company could achieve 16,000 metric tons of capacity in 2009.
According to an SEC filing Friday, LDK still expects to complete the equipment installation at its 1,000-ton plant and to have it operational by the end of the year.
At its 15,000-ton plant, the company plans to complete equipment installation for an annual capacity of 6,000 metric tons by the end of this year, but said it would not begin production at the plant until 2009. In spite of the installation, LDK only expects 5,000 metric tons of capacity to become operational in the first half of next year, said the filing.
"We do not expect to produce any significant quantities of polysilicon prior to 2009," according to the prospectus.
USB AG and Goldman Sachs LLC are underwriting the latest offering.
by: Jennifer Kho September 19, 2008
LDK Solar Co. Ltd. (NYSE: LDK) announced Friday it plans to sell $200.4 million in American depositary shares to raise more money for manufacturing.
The Xinyu City, China-based solar-wafer manufacturer said it would offer 4.8 million American depositary shares at $41.75 each. In filings with the U.S. Securities and Exchange Commission, the company didn't disclose how much it expects to net from the sale.
LDK said it plans to use approximately 60 percent of the net proceeds to build a silicon-manufacturing plant, approximately 30 percent to expand its wafer-production capacity and the final 10 percent for "general corporate activities."
The company is constructing two silicon factories – a 1,000-ton plant and a 15,000-ton plant – and in April already raised $400 million to build the plants and support a planned wafer-capacity expansion.
The company, which said it has grown its multicrystalline solar-wafer production capacity from 880 megawatts in June to 1 gigawatt in August, expects to reach an annual capacity of approximately 1.1 gigawatts by the end of the year and 2 gigawatts by the end of next year. LDK also plans to begin producing monocrystaline wafers, which convert sunlight into electricity more efficiently than multicrystalline wafers, in the fourth quarter of this year and to reach about 100 megawatts of annual capacity by the end of 2008 and 200 megawatts by the end of 2009.
At that time, Hakan Telenius, organizer of the LDK Investor Group, said he expected the money would be sufficient for the rest of 2008, and that the company "would only raise more if they were not able to deliver on 2009 numbers."
LDK, which was founded in 2005 and made an initial public offering last year, didn't respond to calls and emails asking why it needs more money to complete its plants or whether it expects a delay.
But in an SEC filing, the company said its estimated total cost to build the polysilicon plant (made up of two factories in the same location) is approximately $1.3 billion.
The company in April said it planned to spend $1.2 billion on its first two silicon plants, along with $600 million to expand its wafer production.
At the time, LDK said it would finance the bulk of the cost through its operations, including expected net profits of $200 million in 2008 and $400 million in 2009, as well as about $1 billion in expected customer deposits for long-term wafer contracts for this year and next year.
The company expected a shortfall of at least $200 million, which investors hoped would be more than satisfied by the $400 million it raised in April.
In July, LDK announced that it had completed the first phase of construction on its smaller silicon plant and was on track to begin production by October. But it still was awaiting more equipment to complete the plant, which it expected to happen at the end of the year.
It also planned to complete the first phase of its larger silicon plant by the end of this year.
In a research note in June, Piper Jaffray analyst Jesse Pichel wrote that he remains "cautious on LDK's ability to ramp its polysilicon plant on time," although he expected the company could achieve 16,000 metric tons of capacity in 2009.
According to an SEC filing Friday, LDK still expects to complete the equipment installation at its 1,000-ton plant and to have it operational by the end of the year.
At its 15,000-ton plant, the company plans to complete equipment installation for an annual capacity of 6,000 metric tons by the end of this year, but said it would not begin production at the plant until 2009. In spite of the installation, LDK only expects 5,000 metric tons of capacity to become operational in the first half of next year, said the filing.
"We do not expect to produce any significant quantities of polysilicon prior to 2009," according to the prospectus.
USB AG and Goldman Sachs LLC are underwriting the latest offering.
Saturday, September 6, 2008
LDK Solar enters into 8-Yr contract with Sumitomo to supply multicrystalline solar wafers
9/5/2008 3:31 AM ET
(RTTNews) - Friday, LDK Solar Co. Ltd. said it signed an eight-year contract with Japan- based Sumitomo Corp. to supply multicrystalline solar wafers to a manufacturer of solar cells and modules in Japan.
As per the agreement, LDK Solar will deliver around 750 MW of multicrystalline silicon wafers to Sumitomo over an eight-year period, beginning in 2009 and extending through 2016. Sumitomo will make an advanced payment representing a portion of the contract value to LDK Solar.
(RTTNews) - Friday, LDK Solar Co. Ltd. said it signed an eight-year contract with Japan- based Sumitomo Corp. to supply multicrystalline solar wafers to a manufacturer of solar cells and modules in Japan.
As per the agreement, LDK Solar will deliver around 750 MW of multicrystalline silicon wafers to Sumitomo over an eight-year period, beginning in 2009 and extending through 2016. Sumitomo will make an advanced payment representing a portion of the contract value to LDK Solar.
LDK Solar signs $32M contract with GT Solar
Associated Press 09.04.08
NEW YORK - LDK Solar Co. said Thursday it has inked a $32 million contract with GT Solar International Inc. for polysilicon CVD reactors to install in its Xinyu City, China, facility.
The reactors are used to make polysilicon, a highly purified form of silicon used to make semiconductor wafers for microelectronics applications and solar wafers.
"As the demand for solar energy continues to grow, so does our need to increase and accelerate our manufacturing capacity," Xiaofeng Peng, LDK Solar's chairman and chief executive, said in a release. "With GT Solar's reactor and DSS furnace technologies and expertise, we feel confident that we will be able to meet our rising production goals."
NEW YORK - LDK Solar Co. said Thursday it has inked a $32 million contract with GT Solar International Inc. for polysilicon CVD reactors to install in its Xinyu City, China, facility.
The reactors are used to make polysilicon, a highly purified form of silicon used to make semiconductor wafers for microelectronics applications and solar wafers.
"As the demand for solar energy continues to grow, so does our need to increase and accelerate our manufacturing capacity," Xiaofeng Peng, LDK Solar's chairman and chief executive, said in a release. "With GT Solar's reactor and DSS furnace technologies and expertise, we feel confident that we will be able to meet our rising production goals."
LDK Solar Signs Wafer Supply Agreement with Solartech Energy Corp
XINYU CITY, China and SUNNYVALE, Calif., Sept 03, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd ("LDK Solar") , a leading manufacturer of solar wafers, announced today that it has signed a five-year contract to supply multicrystalline solar wafers to Taiwan-based Solartech Energy Corp. (Solartech).
Under terms of the agreement, LDK Solar will deliver approximately 550 MW of multicrystalline silicon wafers to Solartech over a five-year period, commencing in 2009 and extending through 2013. Solartech will make an advanced payment representing a portion of the contract value to LDK Solar.
"We are pleased to expand our long-standing relationship with Solartech with this additional contract," Xiaofeng Peng, Chairman and CEO of LDK Solar. "Having worked with Solartech since the company became one of our early customers; we look forward to continuing to support their expansion in the solar market."
"We are excited to strengthen our wafer supply pipeline with this additional agreement with LDK Solar," stated Charles C. Chang, President of Solartech. "LDK has been a valued partner to us as we have continued to expand our production capacity."
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.
About Solartech
Founded in June 2005, Solartech Energy Corp. (Solartech) was established on the premise of creating a sustainable business that also provided green energy to the world. Solartech currently has 200 employees and R&D experts in solar cell technologies who are involved in the business of research, development, and manufacturing of high efficiency solar cells. Solartech has been equipped with a fully automated production line which currently has an annual production capacity of 60 MW but will be expanded from 60 MW to 180 MW in 2008. Solartech plans to reach its capacity beyond 1GW per year by 2014. With enterprising and pioneering spirit, Solartech strives to provide clean power to the world by expanding its services that facilitate the growth and expansion of photovoltaic projects while ensuring high quality products and developing cutting-edge technologies.
Under terms of the agreement, LDK Solar will deliver approximately 550 MW of multicrystalline silicon wafers to Solartech over a five-year period, commencing in 2009 and extending through 2013. Solartech will make an advanced payment representing a portion of the contract value to LDK Solar.
"We are pleased to expand our long-standing relationship with Solartech with this additional contract," Xiaofeng Peng, Chairman and CEO of LDK Solar. "Having worked with Solartech since the company became one of our early customers; we look forward to continuing to support their expansion in the solar market."
"We are excited to strengthen our wafer supply pipeline with this additional agreement with LDK Solar," stated Charles C. Chang, President of Solartech. "LDK has been a valued partner to us as we have continued to expand our production capacity."
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.
About Solartech
Founded in June 2005, Solartech Energy Corp. (Solartech) was established on the premise of creating a sustainable business that also provided green energy to the world. Solartech currently has 200 employees and R&D experts in solar cell technologies who are involved in the business of research, development, and manufacturing of high efficiency solar cells. Solartech has been equipped with a fully automated production line which currently has an annual production capacity of 60 MW but will be expanded from 60 MW to 180 MW in 2008. Solartech plans to reach its capacity beyond 1GW per year by 2014. With enterprising and pioneering spirit, Solartech strives to provide clean power to the world by expanding its services that facilitate the growth and expansion of photovoltaic projects while ensuring high quality products and developing cutting-edge technologies.
LDK Solar Reaches 1GW Goal
LDK Solar recently announced reaching the milestone of 1.0 gigawatts (GW) annual production capacity at its solar wafer production facility.
"We are proud to reach this significant milestone and remain confident in our ability to expand to 1.2 GW wafer capacity by the end of 2008. This achievement demonstrates our continued commitment to becoming the largest and lowest cost wafer producer in the solar industry," Xiaofeng Peng, Founder, Chairman and CEO of LDK Solar, said.
LDK Solar's 1.0 GW production capacity is in line with the company's publicly announced plans to reach a target annualized wafer production capacity of up to 1.2 GW by the end of 2008, 2.2 GW by the end of 2009 and 3.2 GW by the end of 2010.
"We are proud to reach this significant milestone and remain confident in our ability to expand to 1.2 GW wafer capacity by the end of 2008. This achievement demonstrates our continued commitment to becoming the largest and lowest cost wafer producer in the solar industry," Xiaofeng Peng, Founder, Chairman and CEO of LDK Solar, said.
LDK Solar's 1.0 GW production capacity is in line with the company's publicly announced plans to reach a target annualized wafer production capacity of up to 1.2 GW by the end of 2008, 2.2 GW by the end of 2009 and 3.2 GW by the end of 2010.
Saturday, August 30, 2008
LDK Signs Seven-Year Wafer Supply Agreement With Hyundai Heavy Industries Co., Ltd.
XINYU CITY, China and SUNNYVALE, Calif., Aug 29, 2008 /PRNewswire via COMTEX/ -- XINYU CITY, China and SUNNYVALE, Calif., Aug. 29 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd ("LDK Solar")(NYSE: LDK), a leading manufacturer of solar wafers, today announced that it has signed a seven-year contract to supply multicrystalline solar wafers to Republic of Korea-based Hyundai Heavy Industries Co., Ltd (HHI).
Under the terms of the agreement, LDK Solar will deliver approximately 440 MW of multicrystalline silicon solar wafers to Hyundai Heavy Industries Co., Ltd over a seven-year period, commencing in 2009 and extending through 2015. Hyundai Heavy Industries Co., Ltd will make a down payment representing a portion of the contract value to LDK Solar.
"We are pleased to have entered into an additional agreement with Hyundai Heavy Industries Co., Ltd. and build upon our partnership," stated Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar. "We continue to support HHI as they expand their presence in the solar markets."
"As we continue to grow our solar business and meet the growing demand for our products in Korea and globally, we are excited to strengthen our long-term wafer supply pipeline by reaching this agreement to secure additional high-quality wafers from LDK Solar," commented Kwon-Tae Kim, HHI's Executive Vice President.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.
About Hyundai Heavy Industries Co., Ltd.
Hyundai Heavy Industries (HHI) is an integrated heavy industries company with six divisions such as shipbuilding and electro electric systems, and combines all of HHI's interests in renewable energies like solar, wind, electric vehicles for low carbon transport, combined gas-fired power generation, and distributed energy for emerging markets. HHI's solar business office and factory are located in Eumseong, Korea, and its headquarters and most of the facilities in Ulsan city, Korea.
Under the terms of the agreement, LDK Solar will deliver approximately 440 MW of multicrystalline silicon solar wafers to Hyundai Heavy Industries Co., Ltd over a seven-year period, commencing in 2009 and extending through 2015. Hyundai Heavy Industries Co., Ltd will make a down payment representing a portion of the contract value to LDK Solar.
"We are pleased to have entered into an additional agreement with Hyundai Heavy Industries Co., Ltd. and build upon our partnership," stated Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar. "We continue to support HHI as they expand their presence in the solar markets."
"As we continue to grow our solar business and meet the growing demand for our products in Korea and globally, we are excited to strengthen our long-term wafer supply pipeline by reaching this agreement to secure additional high-quality wafers from LDK Solar," commented Kwon-Tae Kim, HHI's Executive Vice President.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.
About Hyundai Heavy Industries Co., Ltd.
Hyundai Heavy Industries (HHI) is an integrated heavy industries company with six divisions such as shipbuilding and electro electric systems, and combines all of HHI's interests in renewable energies like solar, wind, electric vehicles for low carbon transport, combined gas-fired power generation, and distributed energy for emerging markets. HHI's solar business office and factory are located in Eumseong, Korea, and its headquarters and most of the facilities in Ulsan city, Korea.
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