LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

developments and other processes generated in connection with their employment with us or their use of our
resources or relating to our business and that they must assign any ownership rights that they may claim in
those works to us. As substantially all of our business is currently conducted in China, we have not taken any
action outside China to protect our intellectual property.
As of the date of this prospectus, Suzhou Liouxin owns ""LDK'' as a registered trademark for solar wafers
and ingots. Suzhou Liouxin is in the process of transferring the trademark to us for a nominal consideration.
Insurance
We maintain property insurance coverage on our facilities and production equipment, which amounted to
approximately $65.8 million as of December 31, 2006 and March 31, 2007. We do not have insurance
coverage on other assets of ours, such as products in transit, inventory in stock, interruption of business or
product liabilities. We consider our insurance coverage to be adequate to cover all normal risks associated with
our operations in accordance with industry standards and practices in China. We are in the process of
purchasing director and officer liability insurance for our directors and officers.
Production Safety and Environment
We are in material compliance with all applicable production safety and environmental protection laws
and regulations in China. We emphasize production safety and endeavor to operate our manufacturing
facilities in an environmentally responsible manner.
Safety
Our plants, working stations and various facilities have been designed to maintain a safe working
environment. All of our DSS furnaces are equipped with safety kits that limit potential damage in the event of
an accident. We have established a designated safety monitoring office that directly reports to our senior
management. We have adopted a set of production safety procedures that we require our employees to follow
and we provide related trainings to our employees. Our team leaders are regularly required to confirm
production safety and our managers are accountable for any failure to observe our safety procedures. To
enforce our safety procedures, we have formulated an award and penalty system, awarding those who
consistently follow safety procedures and penalizing those who fail to do so.
We require our employees who operate special equipment to have the relevant necessary training before
they are allowed to operate such equipment. We conduct regular and required maintenance on our equipment
to ensure proper and safe working conditions.
Environment
We have undertaken various measures to reduce pollution and the impact of our manufacturing process
on the environment. These measures include monitoring and controlling solid waste, waste water, exhaust
fumes and noise. We currently have an on-site sewage treatment station with a 16-metric-ton daily sewage
treatment capacity and plan to increase its capacity to 30 metric tons per day during the first quarter of 2007.
We believe that we are currently in compliance with all environmental laws and regulations applicable to our
operations in China.
Employees
As of March 31, 2007, we had an aggregate of 3,145 full-time employees. Of these employees, 3,142 were
located at our headquarters and manufacturing plants in Xinyu city, Jiangxi province, China, and three were
located in our branch office in Shanghai, China. Compared to December 31, 2006, we added 1,767 employees
to our workforce during the three months ended March 31, 2007, including 1,638 new employees for our
manufacturing operations. We established our second materials sorting department and third manufacturing
department during the three months ended March 31, 2007. These new departments employed approximately
650 and 100 employees, respectively, as of March 31, 2007.
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