LDK & Phoenix Solar Sign 20-MW Module Deal

LDK Solar Co. Ltd. has signed a contract to supply solar modules to Germany-based Phoenix Solar AG. Under terms of the agreement, LDK Solar will deliver approximately 20 megawatts (MW) of solar modules during the second calendar quarter of 2010.

“We are proud to partner with Phoenix Solar, an international leader in system integration as well as specialist for large-scale PV plants,” said Xiaofeng Peng, chairman and CEO of LDK Solar.  “Our PV modules are meeting the highest technical requirements and are well suited for a wide range of applications from residential to large-scale power plants.  We hope to expand our relationship with Phoenix Solar and partner on future projects.”

LDK also reported its unaudited financial results for the fourth quarter ended December 31, 2009.Fourth quarter 2009 revenue was $304.6 million and the company shipped 340.4 MW of wafers in the fourth quarter, up 33.8% year-over-year. LDK said that its gross margin for the fourth quarter of fiscal 2009 was 9.9% while net loss was $7.3 million.

The company increased wafer production capacity to 1.8 gigawatts (GW) in 2009 and just this week announced that it reached the milestone of 2 GW of annualized capacity at its wafer plant. LDK also sold 15% ownership stake in 15,000 metric ton (MT) annualized capacity polysilicon plant to Jiangxi International Trust and Investment Co. Ltd. for proceeds of approximately $219.7 million.

“During the fourth quarter, we continued to see strengthening wafer demand and improvement in the operating environment for the solar industry,” Peng said. “We reached a number of important milestones and took steps to further strengthen our business. We expanded our wafer capacity to 1.8 GW at the end of the quarter, further extending our market leadership in wafer capacity. We took several initiatives to strengthen our financial position including the sale of 15% ownership stake in our polysilicon manufacturing facility, the swap of short-term borrowings with long-term borrowings and a follow-on equity offering. These actions provided the Company with additional liquidity and operating flexibility.”

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