LDK Solar is investing approximately $40m to establish a new manufacturing facility in Jiangxi Province, China.

The proposed manufacturing plant, located in Nanchang City, will have capacity to supply two million two-inch equivalent pieces of sapphire wafers annually.

The company said the facility will be positioned to capture the growing opportunities in the LED industry.

LDK Solar chairman and CEO Xiaofeng Peng said the company the new investment in manufacturing sapphire wafers has a great synergy with LDK Solar’s crystallization and wafer engineering and manufacturing expertise, and will enhance LDK Solar’s product offerings.

LDK Solar is a manufacturer of multicrystalline solar wafers and photovoltaic products.

The company manufactures polysilicon, mono and multicrystalline ingots, wafers, modules and cells.