LDK Solar and Ganzhong TCS Plant Sign Long-Term Supply Framework Contract
Xinyu City, China and Sunnyvale, CA, January 16, 2008 – LDK Solar Co., Ltd. (NYSE:LDK), a leading manufacturer of multicrystalline solar wafers, announced today that it has signed a long-term framework contract for the supply of Trichlorosilane (TCS) with Jiangxi Ganzhong Chlorine & Caustic Company Ltd. (Ganzhong).
TCS is the key chemical used in the production of polysilicon.Under the contract, Ganzhong’s TCS plant will supply a minimum of 400 tons per month of TCS gas at favorable pricing beginning in May, 2008 and an expected minimum monthly supply of 1,600 tons per month beginning in August of 2008.
“We are pleased to enter into an agreement with Ganzhong to secure this key manufacturing material for our first polysilicon facility,” stated Xiaofeng Peng, Chairman and CEO.“Ganzhong’s close proximity to our polysilicon plant will enhance efficiencies.Through this contract with Ganzhong, we have secured 100% of our TCS requirements for planned polysilicon production in our first facility.”
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK’s headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People’s Republic of China.The company’s office in the United States is located in Sunnyvale, California.
About Jiangxi Ganzhong Chlorine & Caustic Company Ltd.
Ganzhong is specialized in the production of caustic and TCS chemicals. Located in Zhangshu City, Jiangxi Province, it is one of the largest suppliers of TCS in China.
Safe Harbor Statement for LDK
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry.In particular, this press release contains forward-looking statements about the expected future benefits from a contract for additional polysilicon.These statements are based upon information available to LDK’s management as of the date hereof.Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including, but not limited to, the failure by either party to fulfill its obligations under such contract.The press release also contains forward looking statements about the progress of LDK’s construction of its polysilicon plant.These statements are based on information available to LDK’s management today.Actual results may differ, including various factors which may delay or disrupt the plant’s construction and completion, including the risk of labor difficulties, construction difficulties or financing difficulties.
The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
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LDK Solar Co., Ltd.