Seoul, Korea [RenewableEnergyWorld.com] Consumer electronics company LG Electronics and Conergy AG have signed a memorandum of understanding (MoU) to form a solar module manufacturing joint venture. Under the terms of the MoU, LG would acquire a 75% stake in Conergy’s solar module plant in Frankfurt, Germany, that is currently in the ramp-up phase.
LG will bring its R&D knowledge together with its expertise in mass manufacturing while Conergy will provide the joint venture with access to the market through its distribution franchise, the two companies said. The joint venture is expected to get underway by the end of the year.
“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 related news, Conergy also recently announced that it has now sold its wind turbine generator business to Warburg Pincus, the global investment group, including development, sales, and a production facility in Bremerhaven. The sale will result in a one-time, largely non-cash write-off of approximately €35 million [US $50.68] from discontinued operations. The purchase price was not disclosed. Conergy has supplied 1 gigawatt of renewable energy technology to date, of which solar modules account for 800 megawatts.