LDK plans lay off
Number of employees affected not known yet
LDK announced it planned to readjust its business and let go some workers - likely in its wafer division. This is after a weibo message broke out saying workers with less than 3 years experience in his division will be laid off.
Late last month, there were reports about LDK failing to pay some of its employees and suppliers on time. We have blogged before. This announcement is actually expected as LDK's high debt and sluggish business took a toll on its financial health.
LDK has the highest debt among all the Chinese solar companies, including those not listed in the U.S. It tried to sell its polysilicon division last year but the rapidly declining polysilicon price made it impossible for LDK to fetch a decent price. Despite LDK's large scale, its costs are not among the most competitive solar companies in China.
Despite its connection to high level government officials (CEO Peng was among the guests visiting US along with Vice Chairman Xi), LDK still has the highest probability to fail as its debt situation is rather hopeless.
