Chinese-based LDK Solar, Ltd. (NYSE: LDK) reached an agreement to purchase 70 percent of U.S.-based Solar Power, Inc. (SPI), a photovoltaic manufacturer and installer. Under the agreement, LDK will pay $33 million for the majority ownership stake in SPI, allowing the company to focus on large installations in the U.S. and the Americas.

LDK’s investment will allow SPI greater access to financing for developing large-scale photovoltaic projects in the United States.

“It’s going to allow us to focus on the marketing sales and development of large-scale solar in the United States,” said SPI Vice President of Marketing Mike Anderson. He added that the company is focused on utility scale systems and large-scale distributed generation systems.

In a press release, LDK said it made the investment to accelerate the development of SPI’s project pipeline, which it projects will add “downstream benefit” to LDK.

Under the agreement, LDK will take over the manufacturing of SPI’s panels, which were previously made in Shenzhen, China. It also will purchase some of SPI’s manufacturing equipment and take over SPI’s manufacturing facility.

“They’re going to manufacturer our panels to our specs,” said Anderson. He added that they’re also going to produce some of the company’s racking products, like its Skymount. “They’re going to be SPI branding so none of that’s going to change.”

Anderson said he did not know if LDK would use SPI’s specs in making their own panels.

An additional benefit, according to Anderson is best in class pricing.

“Something, heretofore, we wouldn’t have been able to get on our own,” he said.

LDK said, “SPI will maintain a separate logistical team in Shenzhen to enhance project development, design and related project management functions at a new location in Shenzhen.”

Neither company has a manufacturing facility in the U.S.

“Both companies have an interest in opening a plant here in the U.S., but we don’t have any plans as of yet,” Anderson said.

Under the agreement, Anderson said SPI’s corporate structure will remain the same.

However, LDK CEO Xiaofeng Peng will become chairman of SPI’s board. And Jack Lai, LDK’s chief financial officer, will also join SPI’s board.

Image courtesy of LDK.