GT Solar to supply polysilicon reactors to LDK

Xinyu, China-based LDK Solar (NYSE: LDK) announced today that it signed a $32 million agreement to purchase polysilicon reactors from Merrimack, N.H.'s GT Solar International (Nasdaq: SOLR).

The deal comes less than two months after shares of GT Solar took a tumble in the company's second day of trading after client LDK signed a contract with a Chinese competitor. LDK made a deal in July to buy production equipment from China's JYT.

At the time, Bob Woodbury, GT Solar's CFO, said, "This announcement by LDK does not in any way impact GT Solar's backlog, nor do we believe it will have any effect on our internal targets or projections."

"In fact, LDK Solar's total orders represent less than 20 percent of our current backlog. Moreover, LDK's furnace orders represent less than eight percent of our current backlog."

GT Solar priced 30.3 million shares at $16.50 in July, pricing its initial public offering at the middle of an expected range (see GT Solar prices IPO).

The company's shares were trading at $10.73 in afternoon trading today, down 0.28 percent.

"We are pleased to have signed this new agreement with GT Solar, a valued provider with which we have a long-standing relationship," said Xiaofeng Peng, chairmand and CEO of LDK.

Tom Zarrella, president and CEO of GT Solar, said, "We look forward to continuing our work with LDK Solar, and to helping this company further its position as a leader in low cost solar wafer manufacturing."

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