LDK Solar Co. Ltd., a manufacturer of multicrystalline solar wafers, has entered into an agreement to acquire 33.5% of crucible manufacturer Jiangxi Sinoma New Material Co. Ltd. from Xinyu Chengdong Investment and Construction Co. Ltd.
Sinoma, founded in May 2007, completed construction of its plant to manufacture crucibles in September. The company started test production in November 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. Sinoma integrated its own manufacturing process, equipment development and new technology research, the companies say.
Sinoma's proximity to LDKs wafer factory will significantly reduce the logistical costs typically associated with the acquisition of crucibles from abroad,’ says Jack Lai, chief financial officer of LDK Solar. ‘Domestic-sourced procurement is part of our ongoing initiatives to reduce our manufacturing costs. 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.’