SUNNYVALE, Calif. (AP) — LDK Solar Co. said Monday it agreed to buy a 33.5 percent stake in a crucible maker for $2.3 million to lower manufacturing costs.
LDK will buy an interest in Jiangxi Sinoma New Material Co. from Xinyu Chengdong Investment and Construction Co. The purchase will ''significantly reduce'' its costs of buying crucibles from abroad, Chief Financial Officer Jack Lai said in a statement.
Both LDK and Jiangxi are based in the Xinyu City region in China. The solar-power industry uses crucibles to heat silicon to very high temperatures to make solar wafers.
LDK expects the agreement will allow it to secure enough crucibles for its planned expansion, Lai added. However, Sinoma is a new company that is expanding its own production capacity.
The manufacturer was founded in May and completed construction of its crucible plant in September. It started test production in November and started shipping products to its customers thereafter. Its current production capacity is 30,000 units per year, with a goal of 80,000 units per year by the end of 2008.
