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LDK Solar Scores 600 MW Of Projects

June 4, 2012

With the company scheduled to disclose their Q1 2012 earnings results after the market closes tomorrow, LDK Solar (LDK :NYSE) announced today they have secured three engineering, procurement, and constructions for three projects of 200 megawatts (MW) each.

The three projects will be built in the Gansu province of the People’s Republic of China over the next three years. The first 200 MW will be built in Jiuquan City, the second 200 MW will be constructed in Jayuguan City over the next three years, and the third 200 MW project will be in Zhangye City over the next two years.

LDK Solar did not disclose who is picking up the tab for these projects.

Sound suspicious? Considering LDK is better known for announcing large module supply agreements, today’s announcement doesn’t have enough details to pry open the wallets of equities investors.

And with the company’s share price down 75.37 percent over the last year, desperation should be beginning to take hold. LDK has aggressively has expanded its production capabilities over the last two years only to be greeted by a market for solar modules that is currently imploding.

Will today’s announcement make a difference? Considering the company desperately needs to deliver on the cost-cutting strategies it alluded to in its much-delayed Q4 2011 results delivered almost a month ago, investors have to be concerned as to whether or not they have made any substantial progress in this area.

But if today’s announcement holds true, the company has made substantial progress on its 2012 guidance of PV system project construction of 400 MW to 600 MW.

Now if they can only deliver on substantially cutting their costs.

Overall, investors weren’t buying the 600 MW of projects as shares of LDK were down 1.73 percent in afternoon trading.

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