LDK Solar building $1B polysilicon plant

China's LDK Solar (NYSE: LDK) plans to boost production with a new $1 billion polysilicon plant in Xinyu City.

"With this new facility, LDK Solar will be able to meet the world’s growing demand for polysilicon," said Xiaofeng Peng, chairman and CEO of LDK Solar.

LDK expects to complete construction and reach production capacity of up to 6,000 metric tons of polysilicon by the end of 2008 and 15,000 metric tons by the end of 2009.

Texas-based Fluor (NYSE: FLR) will provide front-end engineering and design, and engineering, procurement and construction-management services.

"Fluor maintains a strong presence in the polysilicon market, and this project is important to our continued strength in the industry, as well as our growing operations in China," said David Seaton, president of Fluor's Energy and Chemicals Group.

Fluor said its offices in Greenville, S.C., and Shanghai will execute the work.

Site preparation has already begun for the plant, which will be adjacent to LDK's existing solar wafer manufacturing facilities in Xinyu.

"Speed of execution will be a key to this agreement, and there will be an incentive to Fluor if this project is performed ahead of schedule and below budget," said LDK's Peng.

Last month, LDK announced two supply deals with companies in Taiwan.

On Aug. 16, the company announced a contract to supply $516 million worth of its multicrystalline solar wafers to Chuan-Yi Investment (see LDK Solar to supply Taiwan's Chuan-Yi).

And on Aug. 29, LDK said it would deliver $495 million worth of wafers to Neo Solar Power through 2009 (see China's LDK Solar to supply Neo Solar Power).

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