LDK Solar, Qimonda sign deal for solar wafers, scrap silicon
Monday May 5, 5:31 pm ET
LDK Solar signs deal to supply solar wafers to Qimonda and get access to scrap silicon
NEW YORK (AP) -- LDK Solar Co. said Monday it received a five-year contract to supply solar wafers to Qimonda AG and get access to scrap silicon from the German memory-chip maker.
Financial terms of the deal were not disclosed.
Under the agreement, China-based LDK will supply a total of 540 megawatts of multicrystalline solar wafers to Qimonda or its joint venture with Centrosolar Group AG over five years beginning in 2009. In exchange, LDK will receive an advance payment and scrap silicon from Qimonda.
"We are very pleased to have secured an additional resource of scrap silicon material through this strategic partnership," LDK Chairman and Chief Executive Xiaofeng Peng said in a statement.
Accessing a sufficient, reliable supply of silicon -- a key ingredient in solar wafers and microchips -- has been a challenge for a number of solar-power companies amid growing demand for the alternative power source.
A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy. Solar plants typically have less capacity because they depend on the sun for generation.
LDK shares jumped 80 cents to $36 in after-hours trading. Earlier, the stock rose $1.79, or 5.4 percent, to close at $35.20.