LG Electronics and Conergy AG announced the signing of a protocol of intent to establish joint ventures to manufacture photovoltaic modules. According to the agreement LG will acquire 75 percent stake in Conergy factory for the production of photovoltaic modules in Frankfurt an der Oder. Conergy will retain the remaining 25%. Currently, the plant increased the output of its products. LG and Conergy plans to launch its joint venture by the end of the year.
LG contribution to the common cause will be its extensive experience in research and development, including the development of its photovoltaic technology, which it has been for several years. LG is also going to use their knowledge and experience in mass production of flat screen displays that are similar products with photovoltaic systems. Conergy, as a leading manufacturer of photovoltaic elements has unique access to a relevant market through its extensive sales network covering more than 20 countries on five continents. This also makes it a significant contribution.
Solar energy offers for LG impressive new features. It has the most advanced technology and competitive production, and co-production with Conergy, a leading company in its niche, gives LG a chance to carry out a rapid pulse and take a leading position in the industry.
Protocol of intent is not binding. Before the parties will sign an agreement, they will need to comply with certain conditions. It is anticipated that the agreement will be signed before the end of the year. Currently, investment banks Morgan Stanley and Jefferies advise LG Electronics and Conergy, respectively, relating to the preparations for signing the agreement.
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