LG Electronics recently notified Conergy AG that it no longer wants to proceed with the acquisition of a majority stake in the company’s solar module production in Frankfurt through a joint venture, but will continue to review further options for collaboration. LG cited the worldwide economic crisis and changes in strategic direction as reasons for the termination in negotiations. The two companies had singed a non-binding memorandum of understanding on 11 September 2008 to mutually operate the Frankfurt (Oder) plant.
“Despite LG’s decision we are pleased about the unchanged interest of LG in a continued close collaboration with Conergy as a one of the world’s largest system integrators. This once again reconfirms our chosen downstream strategy. Regarding our plant in Frankfurt (Oder), which is regarded as one of the most modern full-integrated plants of its kind, we will examine all further options”, said Dieter Ammer, Chief Executive Officer of Conergy AG.
Conergy is in the midst of a restructuring process and has stripped nearly all non-core activities as well as vacating from markets outside Germany, which showed no progress to become satisfactorily profitable. The company plans to alleviate its financial situation on a sustainable basis by a capital increase.