NEW YORK ( TheStreet) -- LDK Solar (LDK) is planning to build a solar manufacturing facility with 1 gigawatt of solar cell and 500 megawatts of solar module capacity. The manufacturing facility is expected to begin production in the second quarter of 2011, backed by $368 million in financing for up to three years from a Chinese lender.
Many of LDK Solar's Chinese peers are ramping up capacity and moving to a more vertically integrated model. Therefore, it's not a surprise that solar wafer maker LDK would be looking to branch out on the solar supply chain. However, LDK's plans are complicated by three factors: 1) its ongoing polysilicon plant ramp, 2) its balance sheet issues, and 3) potential oversupply in solar.
LDK just came off a solid second quarter, during which the Chinese solar wafer maker improved its balance sheet to an extent that LDK hadn't been able to achieve in the past two years.
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