LDK Solar will invest in a solar cell and module facility in Hefei High-Tech Industrial Development Zone to establish a renewable energy manufacturing hub in China.

The facility will have the annual capacity to produce 1GW of crystalline-based solar cells and 500MW of solar modules.

Hefei High-Tech Construction and Investment Group will provide financing of RMB2.5bn ($367m) to LDK Solar for up to three years to build the facility.

Production at the plant is expected to begin in 2011.

LDK Solar CFO Jack Lai said that with the new investment the company will broaden and expand its research and manufacturing capabilities in the complete solar value chain to strengthen support for its module customers and improve its profitability further.