LDK will expand 1000 MT plant by another 6000 MT capacity.
the most important part is this...
(construction funds are secure!!!)
The project's construction in line with state industrial policies, projects a good market prospects, the appropriate scale of construction, advanced technology programme, reliable supply of raw materials, construction funds are secure, upon the completion of a good economic and social benefits, also has the ability to resist risk . 项目的经济效益、社会效益和生态效益显著，具有较高的实施价值。 The project economic, social and ecological benefits significantly, the implementation of a higher value.
but there are also other good points mentioned...
1). construction funds are secure
2). reliable supply of raw materials
3). has the ability to resist risk
4). good market prospects
5). construction in line with state industrial policies
6). the appropriate scale of construction
7). advanced technology programme
8). The project economic, social and ecological benefits significantly, the implementation of a higher value.
(8 is a lucky number in China)
Guardian Angel---> ():-)
How is this physically laid out?
For instance: Is the 1000MT a separate facility and how close is it to the wafer manufacturing facility? Is the 6000MT under evaluation or approved and is it a separate facility or a proposed expansion to the 1000 MT facility.
I'm reading 1000 MT ready in 3 mo. 6000 MT by end of year possibly by partial completion of the 2nd 15 MT facility or the contribution of the 6000 MT
I'm trying to get a handle on this additional capacity, and how it relates to their capacity now. I can't seem to get a real number on their present capacity.
I'm sort of planning a major article like mlu so links would be very good.
Seriously, I think alternative energy is the next big thing, but at this stage, it is hard to tell which form of alternative energy will win, it is either hard to tell which company is going to win. Silicon based PV players need so much capital, any executive mistake can be devastating. That's why I don't think LDK is going to move beyond the trading range at this moment.
This expension of 6000 ton capacity looks like a totally new project. it is now only in the enviromental study stage. It could start the construction in the 2nd half of 2008 if the study result is positive. In this case, LDK total poly capacity would be 22,000 ton at the end of year 2010.
If you remenber the Xinyu Mayor's letter has mentioned that LDK has planed to have poly capacity of 37,000 ton in 2010, It could imply that there are other expension project going to start soon.
However, even Peng has said LDK already has the money in hand for the current 15,000 ton ficility. I am wandering where the money would come from for the 21,000 ton expension projects.
This was actually reported earlier in the news (believe it was one of the Xinyu Government website) and I wrote to LDK IR with the original news attached by copy-paste - the California IR people did not respond to me but reponded to my friend (who independently also wrote to them with the same news attached) saying that the attachment was not readable. This also explains why Sammy keeps talking about total capacity of 22,000 tons which is 15,000t + 1,000t + 6,000t = 22kt. Anyhow, it seems to be clearer now that the 1,000 ton site is planning to be expanded by another 6,000 tons' capacity. This news only says that the expansion plan is going through environmental assessment. After that and many more required studies, the plan needs approval from the National Development and Planning Commission (NDRC - a super ministry, anything not approved by NDRC is not bankable) which will take some more time before LDK will need cash (WS' concern) for the project. The analysts will spin this saying that polysilicon will be in oversupply soon + LDK will need a lot of cash to undertake this expansion + LDK is not transparent with their expansion plans, etc., (recall: TSL abandonned their polysi plant and WS rewarded them). It is for each one of us to assess if this is good for LDK. I believe it is and believe polysi will continue to be in short supply because solar panel demand will grow much faster than what most analysts are assuming today. Also, Peng will get the plant built with much lower capital costs than others have done before - he will be surely using a lot of Made in China equipment like the earlier news item posted by up_us. LDK will be transparent and announce it when it becomes a real project that needs capital planning, right now it is still under incubation - feasibility, environmental assessment, etc.
Therefore, I understand why the 6,000t expansion was never mentioned officially by LDK. They may have 100 more items under incubation and maybe 98% of them will not materialize - no need to annouce all until they become a real project. The above is my reading of the news. BTW, LDK can't possibly respond to all news reports, they have real work to do, they have to focus on completing the 15kt and 1kt plants. EOM.