LDK Solar Co. (LDK), the second-biggest maker of solar wafers, replaced its chief executive officer and hired five other board members including a provincial People’s Congress official. The company’s American depository receipts climbed before erasing their gains.
Chief Operating Officer Tong Xingxue takes over immediately as CEO from Peng Xiaofeng, who stays as chairman, LDK said today in a statement. The other new board members include independent directors Wang Ceng, who has served as a financial consultant for Xinyu city government, and Wu Shian, a member of the Standing Committee of the People’s Congress of Jiangxi.
Peng will stay to guide “LDK Solar’s strategic direction and developing partners and other key relationships,” the company said.
LDK’s depositary receipts, each worth one ordinary share, gained 0.5 percent to 87 cents at the close in New York, after climbing as much as 9.7 percent.
The Xinyu, Jiangxi-based company said Oct. 22 it would sell a 19.9 percent stake to a renewable-energy investor partly owned by the local government. Heng Rui Xin Energy Co. will acquire new LDK stock at 86 U.S. cents each. LDK’s American depositary receipts, each worth an ordinary share, had fallen from $51 in August 2008 to as low as 71 cents before the deal was announced.
U.S. manufacturers led by a unit of SolarWorld AG (SWV) said Oct. 3 they were forced to close plants and fire workers because of unfair Chinese government policies as they sought to persuade regulators the U.S. should maintain penalties on imports.
Chinese exports of crystalline silicon photovoltaic cells and modules have flooded the global market, leading to a price collapse, Gordon Brinser, president of SolarWorld’s U.S. unit, said at an International Trade Commission hearing in Washington.
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