Sunways Reactor-Wafer reversal deal with LDK Solar

Sunways parlays two Siemens Reactors into 10 year, 1GW wafer contract

Continuing to go its very own way, Sunways AG (FRA:SWW) has reversed course and leveraged the two:

Siemens-reactors and associated equipment for a polysilicon production plant including substantial support services

into a multicrystalline silicon solar wafer contract with LDK Solar Co., Ltd. (NYSE:LDK). Wafer deliveries for the total 1GW (Giga-Watt) contract are set to begin in 2008 and cover a period of ten years. See Sunways AG: Strategic agreement for raw material supply with LDK Solar Co., Ltd. signed for the official press release.

With polysilicon still in tight supply, it is no surprise that polysilicon production equipment and consulting services are also oversubscribed. Did CEO Roland Burkhardt always plan to flip his nascent silicon plant or was this deal brokered by key services partner, SolMic GmbH? For LDK Solar, this was a straightforward time to market issue. I speculate (unconfirmed at post time) Sunways’ option to buy five additional reactors is part of this deal.

No contract terms and conditions were disclosed but the following was mentioned: Down-payments have been agreed specifically according to the overall project volume.

I have to feel I was hood winked a bit by a fox on this one. Or did Herr Burkhardt take my advice and decide to look for trichlorosilane (TCS) and a plant location outside of Germany to the extreme of going to China?

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