LG Electronics Ends Joint Venture Negotiations with Conergy

As a result of the current worldwide financial crisis and changes in strategic direction, LG Electronics announced that it has informed Conergy AG that it currently does not want to proceed with the acquisition of a majority stake in Conergy’s solar module production in Frankfurt through a joint venture.

On September 11, 2008, Conergy and LG had signed a non-binding Memorandum of Understanding to jointly operate the plant in Frankfurt. LG said that it will however continue to review other options for cooperation with Conergy.

“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, which is regarded as one of the most modern full-integrated plants of its kind, we will examine all further options,” said Dieter Ammer, CEO of Conergy AG.

Conergy is currently undertaking a restructuring process. Over the past few months, the Hamburg-based company has sold off nearly all if its non-core activities and has moved out of markets outside Germany that it does not see becoming profitable. The company said that it plans to stabilize its financial situation on a sustainable basis by means of an capital increase.

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