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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (13380)	3/13/2008 9:26:51 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

LDK - up pm. Just don't know if this is good or bad news. If you're sold out, where's the growth within? --- Press Release Source: LDK Solar Co., Ltd. LDK Solar Announces Near Sellout of Wafer Capacity for 2008 and 2009; Comments on Its Environmental Practices Thursday March 13, 3:15 am ET XINYU CITY, China and SUNNYVALE, Calif., March 13 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. (NYSE: LDK - News), a leading manufacturer of multicrystalline solar wafers, announced today that based upon its current backlog of contracts, it has almost sold out 100% of its solar wafer capacity for 2008 and has sold more than 90% of its solar wafer capacity for 2009. The long-term nature of its contracts enhances LDK's visibility for its business. In preparation for the growth of its 2008 wafer production and as noted on its fourth quarter conference call, LDK increased its inventory to $380 million at the end of 2007. Inventory in transit represented the most significant portion of the increase, growing from 263 MT to 752 MT during the quarter as the Company purchased silicon material from around the globe. Approximately 8%, or $30 million, of LDK's inventory at year end was classified from an accounting perspective as non-current due to the expectation that these materials would be consumed over a period longer than one year. The materials included in the non-current category represent usable silicon materials, which, due to the current virgin polysilicon shortage can only be used and blended in smaller quantities. The Company expects that the blending ratios of the non-current inventory will significantly change, increasing consumption of the non-current inventory as LDK Solar ramps production of its own polysilicon, and as more virgin polysilicon and higher resistivity feedstock become available. The higher inventory balance is an important factor in present and future cost reduction strategies at LDK Solar. Additionally, LDK commented on its environmental practices. LDK maintains strong environmentally responsible standards across the Company. LDK is committed to building and operating safe and environmentally friendly polysilicon plants. In its state-of the-art polysilicon plants, currently under construction, the Company is implementing the latest proven Western technology for recycling. The plants will utilize a vent recovery system that will recycle and convert silicon tetrachloride (STC) back to Trichlorosilane (TCS) for consumption in the production process. Once completed, LDK's plants will have a fully closed loop system where the majority of the potential waste (STC) will be recycled. About LDK Solar LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the Company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The Company's office in the United States is located in Sunnyvale, California. Safe Harbor Statement