• Print

LDK Solar sells 2.2GW Hefei-based solar cell plant for just US$19.4 million

  •   LDK Solar High-Tech (Hefei) Co., Ltd., located in Hefei City of Anhui Province in China had a solar cell manufacturing capacity of at least 1.5GW
    LDK Solar High-Tech (Hefei) Co., Ltd., located in Hefei City of Anhui Province in China had a solar cell manufacturing capacity of at least 1.5GW

Financials

  • LDKYQ
    OTCMKTS
    0.0760
    0.0000 (0.00%)
    3:43PM EST

Having defaulted on a bond due to cash flow problems, struggling PV manufacturer, LDK Solar has sold its major crystalline solar cell production plant to an affiliate of the Hefei City government for a nominal US$19.4 million.

LDK Solar High-Tech (Hefei) Co., Ltd., located in Hefei City of Anhui Province in China had a solar cell manufacturing capacity of at least 2.2GW, which started production in early 2011 as part of LDK Solar’s strategy to become a fully-integrated module manufacturer rather than a wafer specialist.

LDK Solar has another smaller cell manufacturing facility Xinyu with a capacity of around 300MW per annum, according to previous company documentation.

Although the latest deal with Hefei High Tech Industrial Development Social Service Corporation provides much needed cash to the company, LDK Solar said in a statement that based on the book value of the facility it would report a net loss attributed to the sale of between US$80 – US$90 million.

The Hefei plant was said by management during its second quarter 2011 conference call to have been the main target for capital expenditure that year, which was said at the time to be in the region of US$700 million.

LDK Solar had previously struck a deal with Shanghai Qianjiang Group to purchase the Hefei solar cell facility. However, the company said that the buyer failed to secure government approvals by a March 30 deadline. 

PV-Tech Storage Promo

Newsletter

Preview Latest
Subscribe
We won't share your details - promise!

Publications

  • Photovoltaics International 26th Edition

    Looking back, 2014 was a year of convalescence for a PV industry still battered and bruised from a period of ferocious competition. End-market demand continued apace, with analysts towards the end of 2014 predicting the year would see between around 45 and 50GW of deployment. That has begun to feed through to the supplier end of the market, with all the main manufacturers announcing capacity expansions in 2015 and further ahead.

  • Manufacturing The Solar Future: The 2014 Production Annual

    Although the past few years have proved extremely testing for PV equipment manufacturers, falling module prices have driven solar end-market demand to previously unseen levels. That demand is now starting to be felt by manufacturers, to the extent that leading companies are starting to talk about serious capacity expansions later this year and into 2015. This means that the next 12 months will be a critical period if companies throughout the supply chain are to take full advantage of the PV industry’s next growth phase.

Partners

Acknowledgements

Solar Media