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Conergy negotiates with Chinese investors

Hamburg-based Conergy AG is negotiating with Chinese manufacturers about a possible partnership. According to the company's CEO, it will go beyond a pure supply relationship.

Conergy may be completely taken over by a Chinese company in the future.

Conergy AG

Following speculation in the Financial Times Deutschland on May 10 that a Chinese company would acquire 30 percent of Conergy, CEO Phillip Comberg told Tuesday’s edition of German newspaper, Handelsblatt, "We are negotiating intensively with various companies about comprehensive cooperation." The entry of a Chinese investor should "go beyond a pure supply relationship". "We could, for example, develop solar projects together," continued Comberg, who used to sit on the board of Chinese solar company, Solarfun.

The advantage of such a relationship would be that Chinese companies have better access to credit and, thus, could help with financing. Not to mention that undertaking photovoltaic projects in China is near impossible for foreign companies, unless they have a very strong balance sheet and relationship with central and regional government bodies.

In exchange, Conergy could offer the Chinese company access to the European markets, which Asian manufacturers often lack. "Our core competency is access to customers," said Comberg.

Sooner or later, it is possible that Conergy will be completely taken over by a Chinese competitor. This is, however, thought to be more feasible in the midterm. Exploratory talks are already underway. Comberg would not directly comment, but enigmatically stated, "Strategically we must prepare ourselves for an independent future."

Which begs the question, are Asian investors one of the only options left open to Germany’s beleaguered solar companies, which have recently been dropping like flies?

Germany's solar companies - insolvency timeline