Multicrystalline solar wafer manufacturer LDK Solar has entered into an agreement to acquire 33.5% of crucible manufacturer Jiangxi Sinoma New Material from Xinyu Chengdong Investment and Construction Company for a consideration of approximately RMB17 million.
Jiangxi Sinoma New Material (Sinoma) has completed the construction of a plant to manufacture crucibles in September 2007. The company started test production in November 2007 and subsequently commenced shipping products to its customers. Its current capacity is 30,000 units per year, with a goal of reaching 80,000 units per year by the end of 2008.
Jack Lai, CFO of LDK Solar, said: Sinoma’s proximity to LDK’s wafer factory will significantly reduce the logistical costs typically associated with the acquisition of crucibles from abroad. We expect to be able to secure sufficient crucibles to satisfy our capacity expansion plan and reduce costs of this critical supplemental material in the long-term.