Ominous signs for LDK Solar?


While 100 million yuan (US$16 million) may seem a trifling matter for solar players the size of LDK Solar, Bloomberg has reported that a dispute over this sum is embroiling it. Reports are that the Shanghai Rural Commercial Bank has refused to allow LDK to extend the repayment tenure of the loans it has with the company. Bloomberg cites the official Xinhua News Agency’s website, the Economic Information Daily report.

At the EU PVSEC, earlier this year, vice president global sales and marketing at LDK Solar Stuart Brannigan told pv magazine that the high debt levels that the company are carrying are due to the backend capacity the company has built up. "We have something like 5 GW of ingot, poly, wafer capacity. Our ability to expand quickly to meet aggressive levels of demand is relatively inexpensive and that’s why we have the debt, because we’re already spent the money on capacity."

Brannigan continued that because of this, LDK Solar has been able to attract prospective investors and is in discussion with companies that may become strategic investors. "I think that for companies that might be looking for expansion in the future, I think LDK is quite a persuasive story," said Brannigan.

He concluded that despite the high debt levels, the company is running a lean operation with a small team outside of China and without some of the high costs of other Tier 1 players. "If you look at our peers, they have 3, 4 or 5 times as many people outside of China, with major sponsorship deals that they have to honor and all those other things going on. So the ability to run our organization, effectively, efficiently and get to the customers we need to is very cost competitive opportunity for people."

Earlier this month, LDK entered into a parntership with a Chinese state-owned coal producer.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:

Popular content

Elastocalorics could replace heat pumps, air conditioning systems

16 July 2024 Elastocalorics have the potential to replace current air conditioning and heating systems, offering significant energy savings when paired with techno...


Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.