UPDATE 1-LDK Solar says polysilicon plant on schedule

LOS ANGELES, July 1 (Reuters) - Chinese solar wafer maker LDK Solar Co Ltd (LDK.N) said on Tuesday construction of its polysilicon plant is on schedule, and that it expects to begin production in the next three months.

In a statement, LDK Chairman Xiaofeng Peng said the company expected to produce between 100 and 350 tonnes of polysilicon this year.

LDK is building its own polysilicon plant in Xinyu City, China, to help offset soaring costs on the raw material. Polysilicon is used in the solar power industry to transform sunlight into electricity.

Ultimately, the plant is expected to produce up to 15,000 tonnes of polysilicon a year. The first phase of construction, which will give the plant a capacity of 6,000 tonnes, is expected to be completed by the end of 2008, LDK said. (Reporting by Nichola Groom)