Cencorp Corporation Stock Exchange Release 20 December 2012 at 15.20 Finnish time
TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION TO FUND CENCORP’S PHOTOVOLTAIC MODULE BUSINESS – CENCORP IS TARGETING TO OPEN A PHOTOVOLTAIC MODULE PLANT BASED ON THE COMPANY’S OWN LAYOUT IN FINLAND IN EARLY 2014
The Finnish Funding Agency for Technology and Innovation – Tekes gives Cencorp a loan, of ca. 3 million Euros, to develop business and production model relating to the design and production of cost effective photovoltaic modules as well as to the development of module components. The loan can amount maximum to 50 percent of the project’s total costs which are estimated to be ca. 6 million Euros. The loan will be withdrawn in the course of the years 2013 and 2014. The loan period is ten years.
Among other things, the Tekes funding decision is subject to capital investments, amounting totally to 3 million Euros at the minimum, to be made in Cencorp during the period from 20 September 2012 to 30 June 2013. Half of the required investments was already secured on 3 December 2012 as Savcor Group Oy and SCI Invest Oy, a company under the control of Iikka Savisalo, the CEO of Cencorp, subscribed totally 1.5 million Euros of Cencorp’s convertible bond which is a capital loan.
Iikka Savisalo, Cencorp’s CEO:”We are very happy to get an investor, like Tekes who understands technology and related opportunities, in the photovoltaic module project. I believe the cooperation with Tekes will clearly accelerate Cencorp’s transition into a technology company providing Cleantech applications according to the company’s strategy. Cencorp’s most developed Cleantech applications are photovoltaic modules and relating components and production technology. In the production of efficient next generation photovoltaic modules automation will play a major role. In the second half of the year 2012 Cencorp has developed fully automated production concept for photovoltaic modules. With the funding, secured now, Cencorp will start a development project aiming at manufacturing and implementing a photovoltaic module production line based on Cencorp’s own layout. The factory’s location will probably be either Mikkeli or Salo. Cencorp has already operations in both cities. The plant is due to be ready in early 2014 and according to my current estimations the plant’s turnover will exceed 50 million Euros when operating at full capacity. Sales negotiations regarding the plant’s production capacity are run with several foreign operators. Additionally, it is our intention to utilize the plant in customer presentations and to test production automation applications. The most potential customers are module manufacturers who are planning to start their own next generation photovoltaic module production. We believe we will get our first orders already in 2013”, says Iikka Savisalo, Cencorp’s CEO.
Tekes loan facility will have a positive effect in Cencorp’s financing position. At the same time Cencorp’s current transition into a company developing and providing Cleantech applications requires major investments from the company. These investments include, among other things, photovoltaic business transactions agreed with Avery Dennison Corporation and Sunweb Solar Energy Holding BV upon non-binding Memorandums of Understanding. Thus, Cencorp’s financing position will continue to be tight, based on the current estimations, until the transition phase has been completed successfully.
Cencorp’s transition from a company manufacturing only production automation applications and special components into a company that develops and provides Cleantech applications with a strong market position as provider, using laser and automation technology, of locally in different market areas produced, high-quality photovoltaic modules, involves risks. Even though Cencorp’s strategy and objectives are based on market knowledge and technical surveys, the risks are significant and it is not certain if the company reaches all or part of the targets set for it. Cencorp’s future outlook will be highly dependent on the company’s ability to reach the targeted market position in the global photovoltaic module market as well as on the company’s long-term financing. Cencorp’s goal is to reach strong market position as provider of locally produced high-quality photovoltaic modules.
In Mikkeli 20 December 2012
Cencorp Corporation
Board of Directors
For more information, please contact:
Iikka Savisalo, President and CEO, tel. +358 40 521 6082, iikka.savisalo@cencorp.com
Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com
Cencorp Corporation is a leading provider of industrial automation solutions. The equipment included in the product portfolio designed for depaneling, odd-form assembly, testing and laser materials processing substantially improves the efficiency of customers' production. The product range also includes EMI shielding solutions, RFID antennas, other flexible circuits including for example conductive back sheets used in photovoltaic modules and mobile phone antennas. Cencorp's customers are manufacturers of automotive electronics, mobile phone antennas and photovoltaic modules as well as manufacturers operating in telecommunications and in industrial automation. Cencorp's head office is located in Mikkeli, Finland. The company is part of the Finnish Savcor Group.