LDK Solar might revise ’08 silicon output

Xinyu, China-based LDK Solar (NYSE: LDK) said today that it's on target to deliver 5,000 to 7,000 metric tons of polysilicon in 2009 from its new facilities that are still being completed.

The company released a statement to investors saying that its two polysilicon plants—one with an annual capacity of 1,000 metric tons (1,120 U.S. tons), the other 15,000—were both progressing with construction on schedule.

LDK Solar made no promises about this year's polysilicon production, however. The company said it plans to release another statement about whether it can meet this year's goals. LDK Solar representatives did not return calls and e-mails seeking further details.

LDK Solar had previously said the company would produce up to 350 metric tons of polysilicon before the end of 2008.

LDK's stock was down nearly 5 percent at the close of today's trading to $21.86.

A report released last month by ResearchinChina noted that the price of polysilicon had reached an all-time high due to a supply imbalance (see China solar industry faces rising silicon costs).

Earlier this month, LDK Solar announced that it had reached its annualized wafer production target of 1.2 gigawatts for 2008 by the end of the third quarter. The company also estimated its third quarter revenue and wafer shipments had exceeded goals set in both areas.

In April, the company signed an agreement with a subsidiary of Moser Baer India to supply 640 MW of multicrystalline solar wafers starting in mid-2008 through 2017 (see LDK Solar to supply wafers to Moser Baer). The company has also signed deals (see GT Solar to supply polysilicon reactors to LDK) to provide solar wafers to Taiwan’s Solartech Energy and Merrimack, N.H.'s GT Solar International (Nasdaq: SOLR).

All the equipment for LDK Solar’s smaller facility has been installed, and the plant is in the commissioning phase, LDK said.