20 Nov 2009 07:26

LDK sells stake in polysilicon plant for $219 mln

Shanghai. November 20. INTERFAX-CHINA - LDK Solar Co. Ltd., a leading Chinese manufacturer of multicrystaline solar wafers, has sold a 15 percent stake in one of its polysilicon plants to Jiangxi International Trust and Investment Co. Ltd. for RMB 1.5 billion ($219.62 million), LDK Solar announced on Nov. 18.

The plant is located in Xinyu City, Jiangsu Province, and has an annual production capacity of 15,000 tons.

LDK Solar, which is listed on the Shanghai Stock Exchange, said the deal will help strengthen its finances.LDK Solar is possibly being driven by its need for cash after one of its major customers, the German solar firm Q-Cells SE, terminated its purchase contract, a renewable energy expert, who wished to be anonymous, told Interfax.

Q-Cells terminated a 10-year solar purchase contract with LDK Solar early this month, accusing the Jiangxi Province-based company of failing to fulfill its obligations. The contract was signed in December 2007.

LDK Solar, however, maintains that it was Q-Cells that wrongfully terminated the contract and blamed the German company for failing to meet its obligations.

The two companies have yet to bring the matter before the International Chamber of Commerce for arbitration, as stipulated in their purchase contract.