Centrosolar Withdraws From PV Manufacturing Joint Venture
Negotiations have broken down between Centrosolar and the consortium of Portuguese interests that came together to take on Itarion Solar's interest originally held by Qimonda before it became insolvent earlier this year.
Aaron Hand, Executive Editor, Electronic Media -- PV Society, 7/31/2009
Itarion Solar Lda, the joint venture formed originally by Centrosolar Group AG and Qimonda AG to manufacture solar cells in Portugal, will file for insolvency as Centrosolar pulls out of negotiations for its continuation.
Qimonda had announced its partnership with Centrosolar in early May 2008 as a way to diversify from its DRAM manufacturing base. The two companies were going to jointly build, equip and operate the silicon-based solar cell manufacturing plant at Qimonda's existing site in Vila do Conde, Portugal, and production was originally slated to begin next month.
But Qimonda became insolvent near the beginning of this year, at which point a consortium of Portuguese industrial companies, banks and investment funds was formed to take on Qimonda's interest in the venture. Negotiations since have not gone the way Centrosolar had hoped, however, leading the company to conclude that the project would be unsuccessful, according to a statement from the company.
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Centrosolar will focus on its core business, including system integration for PV roof systems. |
"Among other aspects, the latest solution discussed with the consortium entailed excessive risks and necessitated a much greater involvement by Centrosolar in the operating side of business than in the concept originally agreed with Qimonda," the company said. Such a move would have required more management resources than Centrosolar wanted to pull away from its core business, which is primarily system integration for PV roof systems, as well as key solar components such as antireflective glass and mounting systems.
Centrosolar will have to write off its investment in Itarion with a current book value of €10.1 million ($14.54M). Centrosolar and Qimonda are also jointly liable for the financial debt that Itarion carries of ~€16.5 million ($23.75M). An agreement has been reached with the lending banks to repay this amount in installments up until mid-2011, according to Centrosolar.
