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NEW YORK, Oct 8 (Reuters) - LDK Solar Co Ltd LDK.N shares fell more than 26 percent on Monday, extending last week’s sharp decline when a former executive said the solar wafer maker had problems with its silicon inventories.
The shares of the company, based in Jiangxi, China, tumbled 26.4 percent to close at $37.50 on the New York Stock Exchange.
The stock fell 26 percent last week after news that a former financial controller had left the company and challenged LDK’s inventory controls. LDK has said its own internal investigation found no material discrepancies in its financial statement.
Barron’s, in its Oct. 8 issue, said with the help of an interpreter it talked to someone with knowledge of LDK’s manufacturing.
“That person said that the company’s silicon ingots were indeed so impure that a recent production run had produced tons of them that were too contaminated for technicians to even analyze with instruments,” Barron’s reported. “The company says it knows of no such problems.”
A representative of LDK Solar was not available at the company’s office in Sunnyvale, California.
“I’m not surprised by the questions on silicon,” said a solar industry analyst who requested anonymity because he does not cover the company directly.
“Recycling silicon is a process not as simple as others would believe. But the bulk of China solar names have been running on a ‘buy China’ strength and this is taking some of the air out of them.”
The shares of other solar power developers also weakened, with China Sunergy Co Ltd CSUN.O closing off 9.5 percent at $10.08, Yingli Green Energy Energy Holding Co Ltd YGE.N down 9.8 percent at $28.11 and Suntech Power Holdings Co Ltd STP.N down 5.2 percent at $38.85. (Reporting by Matt Daily in New York and Leonard Anderson in San Francisco)