Luca Piffer Country Manager - Italy 2 GW Vertical Integration: The LDK Solar approach The Solar Future Brussels, March 23, 2011
Transcript
1. 2 GW Vertical Integration: The LDK Solar approach Luca
Piffer Country Manager - Italy The Solar Future Brussels, March 23,
2011
2. DisclaimerThe presentation is prepared by LDK Solar Co.,
Ltd. (LDK" or the Company) and is beingpresented solely for the
purpose of corporate communication and general reference.
Thepresentation is not intended as an offer to sell, or to solicit
an offer to buy or form any basis ofinvestment decision for any
class of securities of the Company in any jurisdiction. All
suchinformation should not be used or relied on without
professional advice. The presentation is abrief summary in nature
and do not purport to be a complete description of the Company,
itsbusiness, its current or historical operating results or its
future prospects.This presentation contains forward-looking
statements that involve risks and uncertainties. Allstatements
other than statements of historical facts are forward-looking
statements. Thesestatements involve known and unknown risks,
uncertainties and other factors that may causeour actual results,
performance or achievements to be materially different from
thoseexpressed or implied by the forward-looking statements.This
presentation is provided without any warranty or representation of
any kind, eitherexpressed or implied. The Company specifically
disclaims all responsibilities in respect of anyuse or reliance of
any information, whether financial or otherwise, contained in
thispresentation.
3. LDK Solar Company Overview Overview Key Strengths
Demonstrated Leadership in solar A Leading, Vertically-Integrated,
Wafer Manufacturing: #1 Worldwide Manufacturer of PV Products
Vertically Integrated Solar LDK is one of the worlds leading,
low-cost Manufacturer solar manufacturers Proven Cost Reduction
Founded in Xinyu, China in 2005 Roadmap Listed at NYSE since June
2007 Strong and Diversified Wafer >20.000 Employees, est. 2,5
Bil. USD and Module Customer Base Sales 2010 The Company has
pursued a large scale Attractive Growth Strategies vertical
integration production capacity to continuously reduced costs Solar
Park investments in Europe and China Strong Financing support from
Chinese Bank
4. Solar Industry Growing Rapidly New incentives available from
new countries out + of traditional PV markets. BUT with lower FiT
Increasing demand of Energy from Developing + Countries. BUT with
low finance power Increasing demand of PV Energy from + Developed
countries. BUT at lower cost Our Vision Reduction of PV Energy cost
will be highly + required ( must !) High Capacity Fully Vertical
Integrated PV = Industry + Global Alliance with Strategic
Partner
5. Our Cost Reduction Roadmap 2,0 GW = GRID PARITY The Largest
High quality Fully Integrated high efficiency PV Industry products
in the World + Competitive + cost structure Economies + of scale
& rapid growth Vertical Integration
6. 2,0 GW from Sand to PV Modules 2,0 GW Fully Integrated PV
Industry Polysilicon Plant: TCS Multi Ingot Line- DSS Furnace Mono
Ingot Line- Pullers Wafer Line- Wire Saw Cell Production Line
Module Line
7. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot
Wafer Cell Module In-House In-House & In-House In-House
In-House Production OEM 2,0 GW 5 in 1 Sectors to reduce the PV
costs
8. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot
Wafer Cell Module In-House Production Produces solar and
semiconductor grade polysilicon and chemicals 11,000 MT capacity
today 25,000 MT capacity by end of 2011
9. Overview of LDKs Polysilicon Facilities LDKs Polysilicon
Facilities Production Has Begun in the 15,000 MT Plant 2 Production
Sites both in Xinyu September 2009 Today Ma Hong Plant Started Ramp
Up Production Proceeding 7 Km East of LDKs HQ Quickly 15,000 MT
Planned Capacity Xia Cun Plant 2009 2010 Now 15 km North of LDKs HQ
3,000 MT Planned Capacity LDK Polysilicon Production (MT) LDKs
Polysilicon Facilities are Designed with Best in Class philosophy:
Total 1Q 10: 692 MT 288 MT Lowest-cost Proven Technology 228 MT
Semiconductor Grade Polysilicon 176 MT Low Environmental Impact: Si
In Si Out Highest Design Safety Standard Highly Instrumented and
Automated
10. LDK Solars Close-Loop Modified Siemens Process A closed
loop process enables LDK Solar to further lower the cost of
polysilicon production Close-loop process is in place for both the
small and large plant TCS is being synthesized and STC is being
recycled LDK Solar will fully ramp up its closed loop process by
end of 2010 MG Silicon In Polysilicon Out Crude TCS Pure TCS TCS
Synthesis Purification Polysilicon HCl STC STC H2 STC TCS TCS TCS
H2 HCl STC Converter OGR STC Converters Poly OGR STC TCS H2
HCl
11. LDK 15,000 MT Poly Plant The biggest single polysilicon
plant in the world
12. As Seen From Space! LDK Mahong 15,000 MT Polysilicon Plant
Hydrogen Plant Tank Farm Converter Waste water Building and vent
gas plantHCL Plant OGR Reactor Halls TCS Synthesis and Purification
Utilities Plant
13. Polysilicon Production Status LDKs polysilicon plants are
designed to produce high-purity polysilicon at low cost and low
power consumption Parameters Status 100 - 200 Ohm-cm Polysilicon
and Improving Polysilicon Purity Current Wafer Production Indicates
Good Silicon Quality Quality Supports Solar Single Crystal
Production Fixed Electrical Load is Diluted with Capacity Increase
Plant Electricity Consumption Power Consumption / Kg Si Falling as
Production Ramps 130% Reactor Capacity Demonstrated Poly Reactor
Productivity Reactor Power Consumption Better Than Expected STC
Conversion at Design and Improving Converter Productivity Full
Converter Capacity Demonstrated and Operation is Stable TCS
Conversion Near Design and Improving TCS Synthesis Reactor Reactor
Operation is Now Stable and Ramping
14. Polysilicon Capacity Plan 4Q 09: 4Q 10: 2011: 3,000 MT Line
1 Line 2 Further Ramp-Up (Xia Cun Plant) Full Mechanical Line 1
& 2 to 3,000MT Production Completion 1st 5,000 MT 4Q 09: 2Q 10:
Train Commence Full(Ma Hong Plant) Production Production 2011+ :
Full Production 2nd 5,000 MT 2Q 10: 2H 10: Capacity of Train
Mechanical Commence Completion Production 25.000MT(Ma Hong Plant)
3rd 5,000 MT 1H 11: 1H 11: Train Mechanical Commence(Ma Hong Plant)
Completion Production 2010 2011 Target Cost 1H 10: 2H 10: 1H 11: 2H
11: (per kg) $40 - $60 $35 - $45 $32 - $40 $30 - $35 Production 1H
10: 2H 10: 1H 11: 2H 11: Capacity (MT) 6,000 MT 11,000 MT 16,000 MT
25,000 MT
15. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot
Wafer Cell Module In-House In-House In-House Production Produces
solar Worlds largest Worlds largest and Multi and Mono solar wafer
semiconductor Crystalline industry grade polysilicon industry and
chemicals 3,0 GW capacity 3,0 GW capacity 11,000 MT today today
capacity today 4,0 GW capacity 4,0 GW capacity 25,000 MT by end of
2011 by end of 2011 capacity by end of 2011
16. Global Customer Footprint Solar Wafers Germany Netherlands
China US Belgium Japan France Korea India Taiwan
17. World-Class Technology: Multi Crystal Bigger Ingot Sizes
Wafer Processing Cost ($/Watt) G4 250-270 kg Target $0.04/Watt
reduction in wafer processing costs from 4Q10 to the end of 2011 G5
400-450 kg G6 650-800 kg First G6 800 kg Ingot
18. Continued Leadership in Wafer Manufacturing 2010 Capacity
Share of Major Wafer Wafer Capacity (MW) Manufacturers From zero to
3,0GW in 5 years From zero to 3,0 GW of Wafer Manufacturing in 5
years ! Source : LDK Solar Marketing Dept 2010
19. LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell
Module In-House In-House & In-House In-House In-House
Production OEM Produces solar Worlds largest Worlds largest R&D
and and Multi and Mono solar wafer investments in semiconductor
Crystalline industry process grade polysilicon industry and
chemicals 180 MW capacity 3,0 GW capacity 3,0 GW capacity today
11,000 MT today today capacity today 4,0 GW capacity 4,0 GW
capacity 1.26 GW 25,000 MT by end of 2011 by end of 2011 capacity
by end capacity by end of of 2011 2011
20. Cells: LDK Solar To Manufacture Solar CellsBenefits of
In-House Cell Manufacturing Cell Capacity Plan (in MW) Increase
level of vertical integration Reduce cost of modules In-house,
stable supply of cells Monitor wafer efficiency more closely
Integrated R&D efforts for polysilicon, wafer, cell &
modules
21. Efficiency Roadmap Project Jing Gang Shan 19.0%-21.0%
21.0%-23.0% Multi-Si Efficiency 18.2%-18.6% Mono-Si Efficiency
20.5%-21.0% 17.5%-18.0% 16.8%-17.0% 19.5%-20.0% 16.2%-16.5%
18.5%-19.0% Full passivation Higher front Thinner cell, rear front
& back cell 17.3%-17.5% Higher front contact aspect local
contact, high- contact aspect ratio, higher sheet quality surface
ratio, higher sheet resistance emitter, passivation resistance
emitter, better texturing Current industry better texturing scheme,
reduce efficiencies scheme, reduce shading loss, shading loss,
better BSF better BSF 2010 2014 = Factors Driving Efficiency
Increase
22. LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell
Module In-House In-House & In-House In-House In-House
Production OEM Produces solar Worlds largest Worlds largest R&D
and Acquired Best and Multi and Mono solar wafer investments in
Solar module semiconductor Crystalline industry process capacity
grade polysilicon industry and chemicals 180 MW capacity 1.5 GW
capacity 3,0 GW capacity 3,0 GW capacity today today 11,000 MT
today today capacity today 2.5 GW capacity 4,0 GW capacity 4,0 GW
capacity 1.26 GW capacity by end of 2011 25,000 MT by end of 2011
by end of 2011 by end of 2011 capacity by end of 2011
23. Module Capacity Plan Module Capacity Plan (MW) today 2011
Suzhou 500 500 Nanchang 1000 1,500 Hefei 0 500 Total 1,500
2,500
24. Target Module Processing Cost ($/Watt) Target Module
Processing Cost ($/Watt) Target $0.04/Watt reduction in module
processing costs from 4Q10 to the end of 2011
25. Modules: Reliable Quality for Worldwide Customers Module
Module Module Certifications Warranty Insurance Recycling MUNICH-RE
Insurance Manufactured under stringent One of the most
comprehensive Banking institutions want Since beginning of 2010
quality contract standards: warranties in the solar industry:
protection guarantees on their LDK Solar is proud member of
investments as part of a debt PV Cycle Organization +/- 3% power
output tolerance Materials and Workmanship: financing package:
covered for 25 years LDK Solar is committed to High conversion
efficiency Europes largest insurance finding new ways to make our
Power rating: Tight power provider, Munich Re, provides solar
modules even more Ability to withstand wind and tolerances within
+/- 3% of the an insurance solution which environmentally friendly,
from snow load, and extreme module nameplate rating covers the
performance increasing both cell and temperature variations
warranty of modules production efficiencies, to Long-term Power
Output: proactively adopting recycling Rigorous quality control
Industry-leading power output Protects our customers and their
meeting the highest programs for end-of-life warranty based on the
bankers over the 25 year PV modules international standards
individual modules actual flash warranty term test results at
shipment Industry leading Strengthens customers project 25 year
warranty Start Date: From the date financing package by removing of
sale, not the date performance risk factor and of manufacture doubt
of warranty support Transferability: Transferable to future system
owners unlike other standard warranties
26. R&D Targets for the Next 5 Years Parameters In 5 Years
Total Energy Consumption 120-140kwh/kg Multi-ingot size G7(1000kg)
Wafer Thickness 130-160m Cell Efficiency (Multi-) 19-21% Cell
Efficiency (Mono-) 21-23% Module Efficiency (Multi-) 16-20% Module
Efficiency (Mono-) 19-21%
27. LDK THIN FILM MODULES T.J. Applied Material technology,
high efficiency + Cadmium Free !!
28. Financing schemes opportunities: CDB CDB is a leader in the
implementation in national projects, basic industries and the
high-technology sector as well as pillar industries and critical
infrastructure construction. LDK Solar has entered into a strategic
financing agreement with CDB that will provide up to US$8.9 Billion
of credit facilities to LDK Solar over a five-year period. The
partnership of Chinese economic development Bank with LDK Solar can
provide beneficial reference for economic development and to help
new Renewable Energy Projects across European Countries and
worldwide
29. Conclusion Focus on Low-Cost Strategies & 1 Maintain
Cost Leadership 2 Continue to Strengthen Vertical Integration
Support PV Energy development in New 3 Developing Countries Our
Focus Support PV Energy Expansion on the Mature 4 Countries
Consider Worldwide Strategic Alliances & 5 Acquisitions
30. LDK Solar new Campaign
31. Thank you for your attention Luca Piffer Country Manager
Italy [email protected]