LDK Solar Co. Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, high purity polysilicon and photovoltaic (PV) products, yesterday announced an agreement with integrated solar developer Solar Power Inc. (“SPI”), in which LDK Solar will acquire a 70 percent interest in SPI for approximately $33 million.
The transaction is expected to significantly strengthen SPI’s balance sheet, enabling the company to accelerate the development of its project pipeline of utility-scale power plants and commercial/industrial distributed generation systems. In turn, SPI’s growing portfolio and pipeline will equip LDK Solar with benefits to its vertical integration model through module supply for large scale projects.
“We are very pleased with this new strategic relationship. We have known the SPI team for several years and have been very impressed with the quality of their work and the caliber of the customers they serve. We look forward to working closely with the team that is responsible for outstanding solar projects such as the Staples Center and the Aerojet solar farm,” Xiaofeng Peng, chairman and CEO of LDK Solar stated in the press release. “This transaction also expands our downstream vertical integration opportunities and provides LDK Solar and SPI the opportunity to jointly explore opening manufacturing operations in the U.S. to further enhance SPI’s competitive advantage in North America.”
Per the agreement, LDK Solar will purchase certain components of SPI’s manufacturing equipment and will take total manufacturing control of SPI’s former module manufacturing facility in Shenzhen, China.
SPI will operate a separate logistical team in Shenzhen to enhance project development, design and related project management functions at a new location in Shenzhen, which will allow SPI to focus on the development and construction of large scale and utility scale U.S. solar projects, without sacrificing its competitive position in the solar industry.
Steve Kircher, chairman and CEO of Solar Power, said the deal reflects SPI’s solid position in the market.
“This investment in SPI clearly places our company among the most elite photovoltaic solar developers today,” Kircher stated. “We are honored that LDK Solar has placed value in our legacy projects and in our pipeline. …LDK Solar’s commitment to project development through capital from their direct stock purchase clearly enhances our position in the market. The strength of our newly combined vertical platform should provide us significant competitive advantages going forward.”
For more information visit www.ldksolar.com