LDK Sells Polycrystalline Silicon Plant Equity
LDK | Quote | Chart | News | PowerRating -- LDK Solar Co., Ltd. (NYSE: LDK), a polycrystalline solar wafer manufacturer, decides to sell a 15% stake in its 15,000-ton polycrystalline silicon plant to recover capital and maintain normal operation of the plant.
The buyer is Jiangxi International Trust and Investment Co., Ltd. under the aegis of the Jiangxi State-owned Assets Supervision and Administration Commission, and the purchase price hits CNY 1.5 billion.
An anonymous renewable energy analyst told reporters that because polycrystalline silicon manufacturers are suffering from surplus production capacity, it is difficult for them to get bank loans. Hence, it is a good choice to obtain capital from trust companies.
By June 30, 2009, China had had 19 polycrystalline silicon projects under operation with a production capacity of 30,000 tons per year. Next year, the figure is estimated to top 100,000 tons. However, the country's total demand was only 17,000 tons in 2008.
The high-energy consumption for polycrystalline silicon production, which is even higher than that for aluminum electrolysis, has produced a great burden for manufacturers. As a result, LDK incurred a loss of USD 200 million in the second quarter of 2009. A year ago, the company's gross profit hit USD 112 million.
Source: dycj.ynet.com (November 19, 2009)
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