-CENCORP'S FIRST PHOTOVOLTAIC MODULE DESIGNED BY THE COMPANY WAS MANUFACTURED IN MIKKELI -DURING THE FIRST HALF OF 2013 CENCORP HAS RECEIVED ORDERS FOR PRODUCTION AUTOMATION APPLICATIONS AMOUNTING TO CA. ONE MILLION EUROS FROM A NEW CUSTOME
Cencorp Corporation Stock Exchange Release 23 May 2013 at 10.55 Finnish time
- CENCORP’S FIRST PHOTOVOLTAIC MODULE DESIGNED BY THE COMPANY WAS MANUFACTURED IN MIKKELI
– DURING THE FIRST HALF OF 2013 CENCORP HAS RECEIVED ORDERS FOR PRODUCTION AUTOMATION APPLICATIONS AMOUNTING TO CA. ONE MILLION EUROS FROM A NEW CUSTOMER OPERATING IN THE CONSUMER ELECTRONICS INDUSTRY
1. The first photovoltaic module designed by Cencorp was manufactured in Mikkeli
Cencorp has manufactured its first Conductive Back Sheet (”CBS”) photovoltaic (”PV”) module designed by the company itself. The module will be used for testing and development purposes. The module is utilizing Cencorp’s flexible circuit and laser drilling technologies.
”Cencorp’s first own PV module that is now ready is manufactured in Mikkeli in the automated pilot production line that was purchased from Sunweb Solar in January 2013 and further developed by Cencorp. The new module will be used for testing and development purposes. According to Cencorp’s own tests the module’s performance was as we expected. We are planning to bring the first commercial ready products to the market in 2013”, says Iikka Savisalo, Cencorp’s CEO.
In relation to Cencorp’s cleantech business aiming to utilize solar energy increasingly the company has previously announced the following:
Cencorp is going through the biggest transition in the company’s history into a company with main business operations in providing cleantech applications. At the first stage the company will provide its own component family for photovoltaic modules, out of which Conductive Back Sheet (CBS) will be first brought into the market. Additionally, the company is preparing to launch a next generation photovoltaic module family, based on Cencorp’s own CBS technology and a related fully automated production line. The first fully automated PV module production line will be taken into use in Mikkeli, Finland in early 2014. A pilot factory for module production will commence its operation in Mikkeli already in the next few weeks. Cencorp’s own module structures as well as new module production methods will be tested at the pilot factory.
In the cleantech business, particularly in the photovoltaic industry, many big changes took place in 2012. Many of the European and American solar module manufacturers were forced to close down due to the Chinese price competition. Also Chinese manufacturers suffered from the price competition and several Chinese companies were driven into financial troubles. Due to the price competition and dumping allegations the authorities both in the US and in Europe took preventive actions. The US set significant extra tariffs for the specific Chinese PV modules already last year. EU’s exceptionally strong action plan against the PV module dumping leaked out on 8 May 2013 including company specific tariffs of 37 – 68 per cent for the Chinese PV modules. However, the challenging market environment created a unique opportunity for Cencorp to cost-effectively and fast develop and apply its technology and accelerate its investment plan not fully completed, yet.
The growing market combined with decreasing production capacity and the actions of the authorities are creating an opportunity for Cencorp, utilizing its cleantech technologies, to achieve a market position in the global cleantech market. According to external experts' estimations the CBS related market for PV modules may grow up to USD 25 billion by 2020. Cencorp believes it will achieve a position in this market provided its transition into a cleantech company proceeds as planned and it has sufficient capital required for the growth.
For about one year Cencorp has been developing fully automated production technology for CBS modules. The technology has been introduced to almost all of the most significant solar module manufacturers. Cencorp has taken actions to patent the related innovations. There is only a limited amount of competitors in the market and the customer feedback on Cencorp’s production technology has been positive. Cencorp’s production technology has a special niche: production lines have high level of automation, they are easy to use and require only little space.
The third product family in Cencorp’s solar module strategy includes a series of PV modules based on Cencorp’s own CBS technology. The solar module structure that bases on the technology Cencorp acquired from Sunweb Solar at the end of January 2013 and that has been further developed by Cencorp is one of the most efficient according to the international experts Cencorp has quoted. The first ready products are expected to be introduced in the markets during 2013. Cencorp is negotiating with several traditional energy companies and with global companies producing solar energy on providing module installations for their use.
Cencorp's transition from a company manufacturing only production automation systems and special components into a company that develops and provides Cleantech applications using laser and automation technology, a company with a strong market position as a provider, of locally produced, high-quality photovoltaic modules and a company operating in various geographical markets, 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.
Other risks connected to Cencorp have been presented in more detail in the Interim Report published 15 May 2013 and in the Annual Report for 2012.
2. During the first half of 2013 Cencorp has received orders for production automation applications, amounting to ca. one million Euros from a new customer operating in the consumer electronics industry
During the first half of 2013 Cencorp has received orders worth of approximately one million Euros from a new international customer, operating as a leader of its business within the consumer electronics industry. The order is for production automation applications and includes several Cencorp 1300SR stand alone routers. The machines will be delivered to Mexico and Malesia during the second half of the year 2013.
”Winning an order from this new remarkable customer is important for Cencorp’s Laser and Automation Solutions segment. Getting repeat-orders, in particular, has been challenging in the current market environment. The wide coverage of after sales services Cencorp provides was fundamental in winning the customership and in receiving the repeat-orders. I expect that in the future this type of customers will remarkably contribute to the growth of Cencorp Life Cycle Management segment”, says Iikka Savisalo, Cencorp’s CEO.
In Mikkeli, 23 May 2013
CENCORP CORPORATION
THE BOARD OF DIRECTORS
For more information:
Iikka Savisalo, President and CEO, tel. +358 040 5216082, email 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.
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