2 billion in financial funding: Did SVI abduct someone in Jiangxi Province?
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http://solar.ofweek.com/2012-05/ART-8440-2600-28610881.html LDK Solar (LDK.US), a solar polysilicon manufacturer facing severe financial strain, has recently received emergency financial support from Jiangxi Province. On May 2, relevant departments in Jiangxi Province reached an agreement with Sunwoda to provide 2 billion yuan (in RMB, the same below) to help Sunwoda LDK overcome its difficulties. CEC’s senior management subsequently confirmed that the funds would still be provided in the form of bank loans.
The market is sluggish right now; with his huge business, no amount of money can fill the gaps
This post was last edited by dajiahigh on 2012-5-10 at 11:14. For a business of that scale, 2 billion is merely a drop in the ocean; it will be used to help get through difficult times, and if Sevay manages to survive, its employees will have achieved something significant； It’s impossible to get through; Saiwei went bankrupt, the employees didn’t suffer any losses, and the money is anyway from the taxpayers. Using other people’s money to boost one’s own political achievements – even a fool knows how to do that. . .
Let’s keep our thinking positive. Due to challenges from both internal and external factors, the polysilicon industry across the country is going through a difficult period; under such circumstances, it is our responsibility to provide support. Leaving aside things like achievements and such. **There is still a risk to take; if the 2 billion invested is lost, then the future of those who made the decision will be uncertain. The decision-makers aren’t idiots enough to proceed when it’s clear there’s no hope of success; if they want to achieve results, it’s better to invest those 2 billion in industries with better prospects – that way, there’s no risk involved and they can still achieve their goals. With such a large factory, if it closes down, how will so many people afford to eat? They will cause trouble.
LDK has been making continuous news lately: layoffs, salary cuts, and door blocks. . Negative news keeps reaching our ears. . The news we heard this time should be good news!
The market is cruel. If the market is sluggish, **rescue measures will be taken. Will the level of caution when investing **decrease**? A market economy ensures free competition.
The root cause of Sevi’s predicament is likely the overly extended front line. Everyone wants to create a complete industrial chain, integrate resources, and reduce costs. The problem arises during the integration process; once there is an issue with a certain step and the capital chain is disrupted, it becomes difficult to resolve the situation.
The polysilicon industry is extremely difficult these days; **it’s only natural to have support for new energy sources.
**The biggest supporter of new energy is lobbying higher authorities to open up the huge domestic market – that’s the key.
Is it fair to provide support to Sevina at the expense of other companies? It should be in the form of policy support, such as opening up markets and reducing electricity prices and taxes.
This is the correct answer; as those who came before said, the money isn’t one’s own.