LDK Solar Co., Ltd.(“LDK Solar”; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, announced that China Development Bank Corporation (“CDB”) has recently approved a RMB 440,000,000 (approximately USD 69.8 million) loan to finance the technology upgrade for the Mahong Polysilicon Plant. The financing will primarily be used to invest in hydrochlorination technology, a critical technological improvement necessary to significantly reduce the manufacturing cost of silicon production at the plant. LDK Solar plans to drawdown the loan as market conditions improve and the necessary equipment is ready for its use.
To date, LDK Solar has invested over RMB 12,000,000,000 (approximately USD 1.9 billion) in the Mahong Polysilicon Plant. These investments have been the primary reason for LDK Solar’s high debt ratio. LDK Solar remains focused on continued investment in hydrochlorination technology and reducing the cost of silicon production.
