China-based polysilicon and solar wafer maker LDK Solar has obtained syndicated loans of CNY2 billion (US$321 million) from 11 local banks to ease its financial troubles, according to a report.
State-run China Development Bank arranged the syndicated loan, with over CNY400 million of the sum earmarked for LDK to improve its polysilicon manufacturing process and the remaining for its working capital, said the report from china.com.cn.
LDK will resume operation of its annual polysilicon production capacity of over 20,000 tonnes, and spot market prices of about US$22/kg currently can cover polysilicon production cost, the report indicated.
However, LDK mainly relies on solar wafers for revenues and has fully utilized its production capacity, the report said, adding LDK has undertaken EPC (engineering, procurement, construction) projects setting up PV power-generating stations in China and has obtained contracts with total installation capacity of 400MWp so far in 2014.