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LDK Solar branches out further into silane gas business

The firm expects to begin construction of a new plant to produce the gas in Q3 2011 and commercial production is planned to commence in Q2 2012

LDK Solar, a manufacturer of multicrystalline solar wafers and PV products, has invested $35 million to establish a new manufacturing line to produce silane gas in its Mahong Plant in Xinyu City, Jiangxi Province in China.

The firm will supply up to 2,000 MT of silane gas to meet the growing demand from the semiconductor, solar and flat panel display industries. 

LDK Solar expects to begin construction of this new plant in the third quarter of 2011 and to achieve mechanical completion in the first quarter of 2012.  Commercial production is being planned to commence in the second quarter of 2012.

"We are very pleased to expand our business to capture the growing demand for silane from the semiconductor, flat panel display and solar industries in Asia," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.

"We believe this new investment in manufacturing silane gas has a great synergy with LDK Solar's polysilicon manufacturing expertise and will enhance LDK Solar's product offerings in the long term.  There is growing demand for silane in China, but there is not a domestic supplier."

"We will be able to leverage our existing technologies and Trichlorosilane (TCS) production assets to lower the capital expenditure as well as to achieve very attractive manufacturing costs.  We believe that LDK Solar will have a competitive advantage as the first mover supplying domestic silane gas needs," added Goran Bye, President and CEO of LDK Silicon and Chemical Business Unit.
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