A memorandum of understanding has been signed between LG Electronics and Conergy AG that will see LG take a 75 percent stake in Conergy’s advanced solar module plant in Frankfurt (Oder), Germany. The deal could be in place by the end of 2008, Conergy said. LG will also be involved in R&D activities with Conergy, citing its manufacturing experience in the flat panel display industry and its move into being a major PV player in the years to come.
“This is an opportunity for us to take the lead in the solar technology market right from the start. Contributing our technology and operational expertise to the joint venture allows us to enter the industry much faster and with better valuations than would simply acquiring a standalone solar module manufacturer,” said Kwan Shik Cho, head of the Solar Cell Business Team at LG Electronics. “In addition, this partnership provides us with the strategic advantage in that we gain Conergy – the leading global downstream player – as a long term partner.”
“In taking this step, we have created the opportunity for a long-term partnership with LG Electronics. This strategic alliance will also help us further develop into a leading provider within the photovoltaic market,” said Dieter Ammer, CEO of Conergy. “This would also mean moving significantly further in our realignment program, with a clear focus on downstream activities.”
LG said in May, 2008 that it would be entering the PV industry via an acquisition or through establishing its own manufacturing base.
Conergy is currently in the middle of a major restructuring program to enable it to aggressively ramp its solar module business.