LDK Solar to Buy Stakes in Solar Power

LDK Solar, a multicrystalline solar wafers, polysilicon and photovoltaic products manufacturing company, and Solar Power (SPI), declared that LDK Solar has consented to buy 70% of stakes in SPI valued around $33 million. The investment enables significant gains to both companies.

The deal will appreciably tone up the balance sheet of SPI and will facilitate it to speed-up its large utility-level and industrial and business level distributed generation systems. LDK solar in turn will have the existing and in pipe line projects of SPI in its fold and will receive better downstream benefits through the delivery of modules to higher-end solar projects. LDK solar also has plans buy the parts of SPI’s production equipment to take total control on the production process of SPI’s former module production factory in Shenzhen China. SPI in turn will maintain its own logistical team at a new location in Shenzhen to improve the design and other functions related to project development and to concentrate on the formulation and building of large utility level solar projects in USA, while continuing to upkeep the quality of its products to improve its competitive edge.

Accord to Xiaofeng Peng, LDK Solar’s Chairman and CEO, the signed accord will amplify the downstream vertical integration chances of the company and gives both the companies an opportunity to jointly search for new openings for production operations in the USA to further improve the earlier advantages held by SPI in North America.