UPDATE 1-LDK, Q-Cells eye Europe, China in joint venture

* Joint venture eyes cost reduction

* Firs 40 MW project has been started

* Shares in Q-Cells up 3.3 pct, LDK up 4.6 pct

(adds details, background, analyst quote)

FRANKFURT, April 8 (Reuters) - Q-Cells (QCEG.DE), the world's largest maker of solar cells, and wafer maker LDK Solar (LDK.N) are eyeing markets in Europe and China as well as costs cuts as part of a newly found joint venture, Q-Cells said on Wednesday. The German cartel office early in March told Reuters that the two were planning a joint venture, and a person close to Q-Cells then said that both companies wanted to intensify cooperation, without outlining further details.

LDK already supplies wafers -- which is needed for the production of solar cells and modules -- to Q-Cells [ID:nWEA9167] and the cooperation will bring together closer two giants that operate in different parts of the solar value chain.

Analysts have pointed out that all-rounders that are active in several parts of the value chain are more likely to weather the economic crisis, that has hit Q-Cells and also gripped other peers such as Solon (SOOG.DE) and Suntech Power (STP.N).

Shares in Q-Cells were up 3.3 percent at 1339 GMT and LDK rose 4.6 percent in New York, while the FTSE clean tech index .FTET50 was up 0.4 percent.

"This joint venture will strengthen our position in the crucial business area of large-scale PV (photovoltaic) power plants," Chief Executive of Q-Cells, Anton Milner, said in a statement.