JinkoSolar to resume production at China plant, shares rise

Thu Sep 22, 2011 6:27pm BST

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(Reuters) - JinkoSolar Holding Co expects to resume production at its troubled eastern China plant by early October and said its third-quarter production costs would not be affected, sending its shares up as much as 11 percent.

The 1100-megawatt annual capacity Haining factory, which makes photovoltaic products was temporarily shut down earlier this week following violent protests over toxic wastes released from the plant that polluted a nearby river.

"So far, we have not had any cancellation of orders," a company executive said on a conference call.

The company said it might still deliver products on time.

The Shanghai-based company expects to spend less than 8 million yuan ($1.3 million) to compensate local villagers and other costs related to the incident, the company added.

Subject to local government approval, the company said it will also hire an international agency for an environmental evaluation of its facilities.

JinkoSolar also refuted allegations that the toxic waste had resulted in casualties.

JinkoSolar's shares, which have lost more than a third of their value since last week, were trading up 8 percent at $6.21 in late morning trade on the New York Stock Exchange.

($1 = 6.382 Chinese Yuan)

(Reporting by Divya Lad in Bangalore; Editing by Supriya Kurane)