Outlook update: LDK Solar sees growth in wafer shipments in 2Q, secures $146M in loans

In an updated second-quarter outlook, LDK Solar estimates its shipments of solar wafers will be in the 220-230MW range, up from its previous guidance of 200-220MW. The company also said it expects quarterly revenues to come in between $215 million and $225 million. LDK also secured two loans worth a combined total of RMB 1 billion (about $146 million).

The first of the company's new loans, a one-year term note worth RMB 500 million, was secured from the Export-Import-Bank of China. The other, a three-year-term loan also worth RMB 500 million, was arranged with state-controlled Huarong International Trust and will help cover the costs of LDK's polysilicon plant construction.

 LDK says it had a cash position of more than $250 million and pledged bank deposits and time deposits of more than $170 million as of June 30.

"During the second half of the second quarter, our wafer shipments were driven by stronger than expected demand," said Xiaofeng Peng, LDK's chairman/CEO. "Our annualized wafer capacity at June 30 reached 1.5GW. We are encouraged by the recent improvement in market demand and expect to resume the expansion of our wafer plant, with the goal of reaching 2GW annualized wafer capacity by the end of 2009."

"The construction of our polysilicon plant continues to remain on schedule," he continued. "The second train is targeted to reach mechanical completion in the third quarter of this year and the third train is expected to reach mechanical completion in the first quarter of 2010. We are very pleased to receive continued financial support for our growth plans from our local banks and view this as a testament to the promising future of the solar industry in China."

LDK Solar plans to report its full second-quarter results in mid-August.