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LDK Solar Co. Ltd. (NYSE: LDK) recent entered into a contract with Italy-based systems integrator SAEM Srl to build five 1-megawatt photovoltaic plants in the Apulia region of Italy, the press release said. LDK Solar is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells.
According to the report, the China-based company will supply wafers for the project and SAEM will provide engineering, procurement and construction services, along with system integration.
Commenting on the partnership, LDK chairman and CEO Xiaofeng Peng said in a statement, “We are very eager to increase LDK Solar’s presence in Italy. The Italian PV market continues to be one of the most interesting in Europe and is forecasted to grow significantly over the next three years. Our agreement with SAEM is another noteworthy achievement for us as we work to strengthen our position in the PV power plants market in Europe and continue to build our foundation to capture future opportunities.”
For its part, SAEM group CEO Francesco Maggi made the following statement, “We believe that this partnership with LDK Solar reinforces the connection between SAEM and the world of PV manufacturing in a market that has strong potential. We look forward to working together on future projects to further capitalize on the growing opportunities in this market.”
LDK Solar said construction of the plants will begin in July, with an expected completion date of November. Financial terms of the deal were not disclosed.
LDK Solar sells multicrystalline wafers globally to manufacturers of photovoltaic (PV) products, including solar cells and solar modules. It produces and sells multicrystalline solar wafers between 180 and 220 microns in thickness.
In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. It manufactures multicrystalline ingots from polysilicon feedstock in its directional solidification system (DSS) furnaces as an interim step in producing wafers. In addition to using solar-grade virgin polysilicon, the company also uses other polysilicon materials from various sources in its ingot manufacturing process. In addition, it also sells polysilicon materials, which include ingots and polysilicon scraps.
In its recent chart, LDK’s Bollinger Bands are the tightest they have been during the last 6 months, a condition which typically precedes periods of high volatility. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. With share prices currently above the stock’s 13-day moving average, a bullish signal is indicated, weakened by significant liquidating volume as reflected by downward sloping moving averages.
