LDK to develop solar projects in China

LOS ANGELES (Reuters) - Solar company LDK Solar Co Ltd said on Tuesday it is partnering with the Chinese city of Yancheng to build up to 500 megawatts of photovoltaic solar power projects over the next five years, sending its shares up 6.2 percent in extended trading.

The news comes a month after China launched a long-awaited plan to offer subsidies for large solar power projects. As the world's top greenhouse gas polluter, China is trying to catch up in a global race to find alternatives to fossil fuels.

Since China announced the incentive, domestic solar power producers including Suntech Power Holdings Co Ltd and ReneSola Ltd have announced plans to build big solar power plants in China.

"We believe that an increasing number of PV application projects will originate in China in the future and we will continue to work to position LDK Solar favorably within China's rapidly developing PV market," LDK Chief Executive Xiaofeng Peng said in a statement.

LDK shares rose to $9.40 after closing at $8.85 on the New York Stock Exchange.

Yancheng City is north of Shanghai in China's Jiangsu province. China said in June it would accelerate development in coastal areas of Jiangsu province, which would include Yancheng.

(Reporting by Nichola Groom; editing by Andre Grenon and Steve Orlofsky)