Conergy suing Roth & Rau

Handelsblatt has reported on its website that the German solar company is suing Roth & Rau for compensation worth over a hundred million, because Roth & Rau supplied a solar cell production line both late and outwith the required specifications.

The delay, and deficiencies in the line, are said to have led to lower yields for Conergy. Handelsblatt says a case was filed in court in February.

Roth and Rau declined to comment, continued the German news source. However, talks are said to have resumed, after they broke off unsuccessfully last year. Currently, Roth & Rau is still asking for the rest of the payment for the production line, which is in the one-digit million range.

Cautiously confident

Meanwhile, Conergy has confirmed the conclusion of a positive financial year in 2010. The company boosted sales by 52 percent to reach €913.5 million (2009: €600.9 million). Its foreign sales accounted for 54 percent, which, it says, demonstrates the continuing strength of its international operations.

As was also announced in February, the company has generated positive operational earnings before interest, taxes, depreciation and amortization for the first time since 2006, with €30.1 million (2009 € -10.7 million). Furthermore, it was operationally in the black in the past financial year – and thus also met its own performance targets.

In terms of 2011, Conergy is "cautiously confident". In a statement, it explains: "Although a substantial decrease in market volume is to be anticipated for Germany in 2011, due to reduced feed-in tariffs, overall Conergy nonetheless expects a mainly positive development in 2011 in the solar markets they have opened up in recent years."

It continues: "With essentially unchanged basic conditions for 2011, Conergy expects turnover to exceed a billion euros."

It adds that while it is looking to strengthen its presence in Germany, a key focus will be on entering new foreign markets. The overall aim is to further increase its foreign sales.