LDK Solar (LDK) Flush With Cash Despite Downturn

LDK Solar announced that it has no need to seek additional money from capital markets to fund the company’s expansion, as it already has enough cash on hand to more than double its production capacity. In 2009, the company plans to expand that capacity to 2.2 GW of power. In 2010, it will expand again, to 3.2 GW. LDK founder and chairman Peng Xiaofeng told a reporter from Reuters News Service that the proceeds from LDK’s recent share sale and other cash flow will be enough to cover the expansion, and that the company is weighing the option of making acquisitions in the upstream polysilicon market. Peng also told Reuters that LDK is relatively safe from the effects of the economic downturn, as it is has orders booked years in advance:

“I am not worried at all, as we are booked for the next 10 years.

Some have already paid roughly 10 percent of their orders as a sort of down-payment,” he added.

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