MUNICH, Germany LG Electronics of Korea has cancelled negotiations with PV system integrator Conergy AG (Hamburg, Germany) over a production joint venture. The reasons for the withdrawal are a change in LG's strategic focus and the financial crisis, LG said.
In September, Conergy and LG Electronics had signed a memory of understanding aiming at conjointly operating a manufacturing line in Frankfurt / Oder (Germany) built by Conergy. The plan was that LG would take over the majority for a solar module production joint venture.
While LG has terminated the talks, the company said it still is interested in cooperating with Conergy. "Despite LG's decision, we are pleased about the continuing interest for a cooperation," said Conergy CEO Dieter Ammer. "For the production site in Frankfurt / Oder, one of the most modern fully-integrated PV production lines, we will assess further options." Ammer hinted that there are other suitors for a joint venture; in addition, a possible scenario would be to continue to operate the facility within the Conergy concern. He added that the manufacturing site currently is ramping up the production. By end of 2009, maximum capacity will be reached.
Conergy currently is in the middle of a restructuring process. During the past months, the company has already terminated all non-core activities and withdrew from regional markets where profitability was seen as too low. In addition, the company plans a capital increase.