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China Promoting Recovery in Solar Industry, Local Official Says

March 5 (Bloomberg) -- Chinese authorities are working to promote a rebound in the photovoltaic manufacturing industry and to change the shareholder structure of LDK Solar Co., a local government official said.

“We plan to promote full recovery of production of the solar industry and to change their share holding structure,” said Liu Jie, party secretary of Xinyu, the city where LDK is based, said in Beijing as the National People’s Congress gathered.

LDK, which makes solar wafers and panels, this month named liquidators to wind up its business after missing bond repayments. The company is incorporated in the Cayman Islands and has most of its operations in China and around Xinyu.

Liu said he thought solar demand is picking up and that LDK’s moves in the Caymans are “a normal legal procedure after insolvency.” He echoed the company’s assertion that the manufacturing operations in China won’t be affected and said the factories are “currently fully operating.”

Peng Shaomin, the media director at LDK, said the company is in “full operation” despite the restructuring.

“China bank groups also are providing strong support for the debt restructuring,” he said, noting that LDK plans to start trial production of an upgraded polysilicon plant in the middle of May.

“Orders for wafers have been increasing since the fourth quarter,” he said. Shares of LDK have halted trading in New York during the debt restructuring and he didn’t have a guide on when trading would resume.

To contact Bloomberg News staff for this story: Feifei Shen in Beijing at fshen11@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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