LDK confirms CDB loan for poly-plant

Under-pressure PV group LDK Solar has confirmed details of a 440m yuan, ($69.8m) loan from China Development Bank (CDB), which will be used to invest in its polysilicon operation.

The loan, which was trailed in the Chinese media earlier this week, will be used to finance a technology upgrade at LDK’s Mahong Polysilicon Plant.

A statement says: “The financing will primarily be used to invest in hydrochlorination technology, a critical technological improvement necessary to significantly reduce the manufacturing cost of silicon production at the plant.

“LDK Solar plans to drawdown the loan as market conditions improve and the necessary equipment is ready for its use.”

According to the company, the more than 12bn yuan it has invested in Mahong “has been the primary reason for LDK Solar's high debt ratio”.

LDK  has $3.1bn in Log in to read complete article.

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