LDK Solar completes sale of stake in Chinese plant

AP News
|
Posted: Nov 20, 2009 8:18 AM

LDK Solar Co. Ltd., a Chinese maker of parts for solar cells, on Friday said it completed the sale of a 15 percent ownership stake in a polysilicon plant in China for about $219 million.

LDK Solar said that it has received unspecified proceeds from the sale.

Earlier this week LDK Solar, which sold its interest in the Xinyu City, China, plant to Jiangxi International Trust and Investment Co., said the deal will strengthen its financial position and increase its operating flexibility in the short term.

In August, LDK Solar, which manufactures multicrystalline solar wafers, the principal raw material used to produce solar cells, reported a second-quarter loss as it wrote down the plummeting value of its inventory. It also issued a third-quarter revenue outlook well below Wall Street expectations.

The company said at the time that inventory writedowns and $16.7 million for a loss on firm purchase commitments for polysilicon materials were the result of a rapid price decline for solar wafers.

Jiangxi International Trust and Investment Co. is involved in economic development in Jiangxi Province through the operation of financial trusts, management of enterprise assets and other activities, LDK Solar said.

Shares of the company closed at $7.73 on Thursday.