LDK Solar Signs Contract to Purchase Polysilicon Production Equipment from GT Solar

July 20, 2007: 08:30 AM EST

XINYU CITY, China and SUNNYVALE, Calif., July 20 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, announced today that it has signed a contract to purchase polysilicon production equipment from U.S.-based GT Solar Incorporated, a subsidiary of GT Solar International, Inc.

Under this contract, LDK Solar will purchase polysilicon reactors and other polysilicon production equipment for installation in its manufacturing facilities in Xinyu City, enabling the Company to produce virgin silicon feedstock for use in its production of multicrystalline solar wafers. LDK expects that following installation of this equipment, the Company will have polysilicon production capacity of up to 6,000 metric tons in 2008 and 15,000 metric tons in 2009.

"Through the purchase of this equipment, we are expanding our capabilities in the solar value chain, adding the production of pure polysilicon to our operations," stated Xiaofeng Peng, Chairman and CEO. "In combination with our ability to use recyclable polysilicon in our production process, producing our own pure polysilicon feedstock will enhance our cost efficiencies.

"We look forward to working with GT Solar and installing their best-in- class polysilicon production equipment into our manufacturing facilities. Our purchase contract with GT Solar is a key element of our expanding production plans," concluded Mr. Peng.

"We are excited to work with an industry leader, LDK, in providing them with the equipment that supports their operational expansion," stated Tom Zarrella, President and CEO of GT Solar International.

GT's VP for Polysilicon, David Keck, stated, "LDK has plans to become a leader in polysilicon production, so we are pleased to be working with them and to continue our long standing relationship."

LDK Sr. VP of manufacturing, Nick Sarno, also stated, "This is an exciting day for LDK Solar as the Company has taken one more step toward becoming the world leader in low cost solar wafer manufacturing by securing future polysilicon supplies. The LDK team is looking forward to working with GT Solar and, in particular, with the team headed by Dave Keck. The future offers both challenges and great rewards for all involved."

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.

About GT Solar

GT is one of the largest providers of manufacturing equipment and turnkey manufacturing solutions to the PV industry. Based in Merrimack, NH (USA), the company's products include equipment used to produce multicrystalline solar wafers, cells, modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce the polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.

Construction on large polysilicon production base starts in southwest China

Xinhua Economic News Service , June 28, 2007 Thursday 5:00 AM EST

CHONGQING, June 28 (CEIS) - Construction on a large polysilicon production base involving total investment of four billion yuan started in Wanzhou District, Chongqing Municipality, southwest China, on June 27.

The project, invested by Daqo Group, will be the largest of its kind in China as its first phase project with an annual capacity of 3, 000 tons, is put into production in June of next year.

When the whole project is completed in 2009, it will be capable of producing 6,000 tons of polysilicon a year.

It is of important strategic significance for China to break the monopoly of foreign companies, ease the shortage of raw material supply for its booming solar industry and sharpen the international competitive edge of its solar industry, said market analysts.

Daqo Group, well-known as a middle-voltage electrical equipment producer with annual sales revenue topping six billion yuan, has obtained the exclusive right of polysilicon production technology in China from a German technology transfer company. It is learned that the technology can help Daqo produce both solar-class polysilicon and electronic-class one, with relatively low energy consumption and cost.

Wanzhou of Chongqing is rich in silicon ore, raw materials for producing polysilicon. After the polysilicon project is launched, Wanzhou will try to extend the production chain to the downstream silicon wafer and solar cell sectors.

China's major solar cell makers including Suntech (NYSE: STP), JA Solar (NASDAQ: JASO) and Solarfun Power (NASDAQ: SOLF) are all likely to be Daqo's key clients, but related cooperation agreements are expected to be signed next year, according to Xu Guangfu, chairman of Daqo Group.





June 27th, Daqo Group Multi Silicon Project Broke Ground in Chongqing. This will be the largest multi silicon production base in China, and the total investment is 4 Billion RMB (400 Million Euro).

Daqo Group plans to start the production in June 2008, and the production capacity will reach 3,000 Ton in 2008 and 6,000 Ton in 2009.