Cencorp Corporation Stock Exchange Release 5 November 2012 at 09.00 Finnish time
CENCORP HAS SIGNED A MEMORANDUM OF UNDERSTANDING ON DELIVERING CONDUCTIVE BACK SHEETS TO A MAJOR CHINESE SOLAR PHOTOVOLTAIC (PV) MODULE MANUFACTURER
Cencorp Corporation (”Cencorp”) has signed a Memorandum of Understanding on delivering Conductive Back Sheets (CBS) to one of the leading Chinese PV module manufacturer. The value of the Memorandum of Understanding is expected to be at its minimum ca. EUR 20 million over the course of next three years. The Memorandum of Understanding is non-binding.
”Cencorp’s systematic strategic transition from a company manufacturing automation applications into a company that provides Cleantech applications has reached a remarkable milestone. Cencorp’s new partner, with whom the Memorandum of Understanding has now been signed, has completed the evaluation of Cencorp’s production plant in Beijing and of the components produced at the plant”, says Iikka Savisalo, Cencorp’s CEO.
Cencorp is also negotiating with several other major PV module manufacturers.
As a result of the evaluation process the customer became convinced of Cencorp’s technology and production capability and decided to sign with Cencorp a Memorandum of Understanding determining preliminary commercial terms between the companies for the next three years. In the Memorandum of Understanding the companies agreed for example on the following:
- Cencorp prepares to increase its capacity to meet the customer’s growing demands.
- The customer commits itself to purchase the volumes together agreed upon. The customer’s current capacity need corresponds to deliveries of ca. EUR 20 million in the course of next three years.
- The customer commits itself to run required certification for the CBS.
- Cencorp commits itself to further develop the product and its competitiveness.
- Besides the cooperation in manufacturing the parties agree to cooperate in product development and marketing as well as in new innovations to enhance the parties’ competitiveness in solar modules and related production technologies.
CBS deliveries, based on the Memorandum of Understanding, and relating cash flow is expected to start during the first quarter of 2013.
The final terms of an agreement are still under negotiations, thus execution of the agreement is not yet guaranteed. Additionally, the agreement is subject to Cencorp's short and long term financing which is still under negotiation. Thus, Cencorp is not yet able to estimate the agreement’s possible execution, effective date neither the agreement's impact in Cencorp nor the risks relating to it. Cencorp will announce further information as soon as the negotiations have been finished, which is expected to take place before the end of 2012.
In Mikkeli, 5 November 2012
CENCORP CORPORATION
BOARD OF DIRECTORS
For more information, please contact:
Cencorp: 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.