Conergy
Encyclopedia
Conergy AG is a company in the solar energy industry founded in 1998 by the former chairman of the board Hans-Martin Rüter. It had a turnover
of 706 Million euros in 2007, and employs more than 2000 staff. It also has a company called Conergy Americas.
Since March 2005 Conergy AG has been registered at the Frankfurt Stock Exchange
with the abbreviation “CGY“ and the ISIN
DE 00060 40025. Three months after its IPO, the company was added to the TecDAX
index, in which it remained until March 2011.
By 2007 Conergy had operations in subsidiaries in 25 countries. Until its reorganization in 2008 Conergy addressed the renewable energy market via three brands, which were intended to be clearly delimited from each other. The Conergy group served solar wholesalers, installers, industrial or private roof-owners and investors in solar power as required.
Daughter company of the same name Conergy produces, procures and distributes the products. Engineering arm SunTechnics provides revenue via project management. AET, an acquired entity functions more or less similar to Conergy, with the slight difference of target market. Conergy was catering for individual customers while AET was supposed to take care of distributors.
With this configuration, Conergy generated a revenue of over 1 billion euros in sales in 2005.
Before 2006 the company had around 1,500 employees; by the end of 2006, some 6 months after initiation of 50/50/08, it had approximately 2,300 employees. By mid-2007, the number reached close to 3,000. Many employees were either new or from acquired companies.
During this period, Conergy also broke ground on a high-volume PV module manufacturing plant in Frankfurt-on-Oder on the German-Polish border.
By the third quarter of 2007, cash flow became a problem. In addition, acquired companies were not fully merged in, hence revenues were not coming in. By the time for the stockholders meeting, none of the objectives of the 50/50/08 strategy had been achieved, and the company was unable to procure products for projects that were supposed to be bringing in revenue. The old management team, including Hans-Martin Ruter, stepped down and Dieter Ammer, a member of the supervisory board of Conergy, agreed to a term as interim Managing Director/CEO.
Liquidity shortfall at the end of 2007 forced the company to increase the amount of shares released to the public by around 2,000,000 shares. This raised around 70 million euros, and a further 30 million euros was acquired from banks.
To address the inefficiency of the company at this point, it was decided that the company would now focus on its original core-competencies. Almost all of the previously acquired companies were either sold off, or shut down. Furthermore, an estimated 1,000 employees were laid off. In addition, the former brand strategy which was considered too complex and diluting of the global brand strength was changed and a focus at the core brand was introduced as the new strategy.
Further layoffs continued in 2009 as Conergy effectively closed its New Mexico operations in early August 2009, laying off most of its staff in the state in order to consolidate its US distribution. Its operations headquarters moved to Denver, Co
. The goal of this reorganization was to reduce operating costs and organizational complexity, gain access to a more highly skilled, more diversified labor market, and respond to US market trends in the renewable energy industry. During this time, the company also closed a high cost warehouse in New Mexico and ended distribution of solar thermal, small wind systems and solar water pumping. The company completed the sale of its own solar-powered surface water pumps that had been produced by the US company since the mid-eighties in the US prior to its acquisition by Conergy.
Inc. announced a preliminary deal to form a joint venture with Conergy, its first in the field of solar energy. Under the deal, set to be completed by the end of 2008, LG would acquire a 75% stake in Conergy's Frankfurt solar-panel plant. However, due to the worldwide financial crisis and changes in strategic direction, LG cancelled the acquisition.
(MEMC), a supplier of silicon to the semi-conductor and PV industry, had entered into a contract with Conergy in 2006 to supply silicon for Conergy's new module manufacturing plant. Due to the global silicon shortage, MEMC was able to negotiate very favorable terms that Conergy's management team felt obligated to accept. When the downturn in silicon prices occurred in 2008/2009 and the new Conergy management team attempted to renegotiate a more favorable terms, MEMC was initially unwilling and Conergy brought suit. In late 2009, an agreement was reached that improved terms for Conergy and will likely have positive effects throughout the PV supply chain as other manufacturers also seek to renegotiate unfavorable supply agreements in the new economic and supply conditions.
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
of 706 Million euros in 2007, and employs more than 2000 staff. It also has a company called Conergy Americas.
Since March 2005 Conergy AG has been registered at the Frankfurt Stock Exchange
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the world's 12th largest stock exchange by market capitalization. Located in Frankfurt am Main, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Börse, which also owns the European futures exchange Eurex and the clearing company...
with the abbreviation “CGY“ and the ISIN
ISIN
An International Securities Identification Number uniquely identifies a security. Its structure is defined in ISO 6166. Securities for which ISINs are issued include bonds, commercial paper, equities and warrants...
DE 00060 40025. Three months after its IPO, the company was added to the TecDAX
TecDAX
The TecDAX stock index tracks the performance of the 30 largest German companies from the technology sector. In terms of order book turnover and market capitalization the companies rank below those included in the DAX.The TecDax was introduced on 24 March 2003...
index, in which it remained until March 2011.
By 2007 Conergy had operations in subsidiaries in 25 countries. Until its reorganization in 2008 Conergy addressed the renewable energy market via three brands, which were intended to be clearly delimited from each other. The Conergy group served solar wholesalers, installers, industrial or private roof-owners and investors in solar power as required.
Early phase
Since its foundation some 12 years ago, the company has grown from consisting of only Hans-Martin Rüter to a company present in most German cities and in Spain. It has four daughter companies that operate in the same field as the holding company: SunTechnics (founded in 1996), Conergy, AET and Voltwerk (later Epuron).Daughter company of the same name Conergy produces, procures and distributes the products. Engineering arm SunTechnics provides revenue via project management. AET, an acquired entity functions more or less similar to Conergy, with the slight difference of target market. Conergy was catering for individual customers while AET was supposed to take care of distributors.
With this configuration, Conergy generated a revenue of over 1 billion euros in sales in 2005.
Strategy 50/50/08
In 2006 the company expanded into different renewable energy technologies, and formulated what it called the 50/50/08 strategy to diversify the company's attention into all renewable energy fields, with 50% of revenues from fields unrelated to solar energy, and 50% revenue from outside Germany by 2008, growing organically and via acquisition.Before 2006 the company had around 1,500 employees; by the end of 2006, some 6 months after initiation of 50/50/08, it had approximately 2,300 employees. By mid-2007, the number reached close to 3,000. Many employees were either new or from acquired companies.
During this period, Conergy also broke ground on a high-volume PV module manufacturing plant in Frankfurt-on-Oder on the German-Polish border.
By the third quarter of 2007, cash flow became a problem. In addition, acquired companies were not fully merged in, hence revenues were not coming in. By the time for the stockholders meeting, none of the objectives of the 50/50/08 strategy had been achieved, and the company was unable to procure products for projects that were supposed to be bringing in revenue. The old management team, including Hans-Martin Ruter, stepped down and Dieter Ammer, a member of the supervisory board of Conergy, agreed to a term as interim Managing Director/CEO.
Liquidity shortfall at the end of 2007 forced the company to increase the amount of shares released to the public by around 2,000,000 shares. This raised around 70 million euros, and a further 30 million euros was acquired from banks.
To address the inefficiency of the company at this point, it was decided that the company would now focus on its original core-competencies. Almost all of the previously acquired companies were either sold off, or shut down. Furthermore, an estimated 1,000 employees were laid off. In addition, the former brand strategy which was considered too complex and diluting of the global brand strength was changed and a focus at the core brand was introduced as the new strategy.
Further layoffs continued in 2009 as Conergy effectively closed its New Mexico operations in early August 2009, laying off most of its staff in the state in order to consolidate its US distribution. Its operations headquarters moved to Denver, Co
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. The goal of this reorganization was to reduce operating costs and organizational complexity, gain access to a more highly skilled, more diversified labor market, and respond to US market trends in the renewable energy industry. During this time, the company also closed a high cost warehouse in New Mexico and ended distribution of solar thermal, small wind systems and solar water pumping. The company completed the sale of its own solar-powered surface water pumps that had been produced by the US company since the mid-eighties in the US prior to its acquisition by Conergy.
LG
LG ElectronicsLG Electronics
LG Electronics is a global electronics and telecommunications company headquartered in Yeouido, Seoul, South Korea. The company operates its business through five divisions: mobile communications, home entertainment, home appliance, air conditioning and business solution...
Inc. announced a preliminary deal to form a joint venture with Conergy, its first in the field of solar energy. Under the deal, set to be completed by the end of 2008, LG would acquire a 75% stake in Conergy's Frankfurt solar-panel plant. However, due to the worldwide financial crisis and changes in strategic direction, LG cancelled the acquisition.
MEMC silicon supply contract
MEMC Electronic MaterialsMEMC Electronic Materials
MEMC Electronic Materials is a United States manufacturer of silicon wafers for the semiconductor industry. The company's stock is part of the S&P 500 stock index. Originally established in 1959 as the Monsanto Electronic Materials Company, a business unit of Monsanto Company, the company is...
(MEMC), a supplier of silicon to the semi-conductor and PV industry, had entered into a contract with Conergy in 2006 to supply silicon for Conergy's new module manufacturing plant. Due to the global silicon shortage, MEMC was able to negotiate very favorable terms that Conergy's management team felt obligated to accept. When the downturn in silicon prices occurred in 2008/2009 and the new Conergy management team attempted to renegotiate a more favorable terms, MEMC was initially unwilling and Conergy brought suit. In late 2009, an agreement was reached that improved terms for Conergy and will likely have positive effects throughout the PV supply chain as other manufacturers also seek to renegotiate unfavorable supply agreements in the new economic and supply conditions.
See also
- First SolarFirst SolarFirst Solar, Inc. is an American manufacturer of thin film photovoltaic modules, or solar panels, and a provider to PV power plants of supporting services that include finance, construction, maintenance and end-of-life panel recycling...
- Q-CellsQ-CellsQ-Cells is a manufacturer of photovoltaic cells, established in 1999. Its core business is the development, production and marketing of crystalline silicon photovoltaic cells....
- SolarworldSolarWorldSolarWorld is a German company dedicated to the manufacture and marketing photovoltaic products worldwide by integrating all components of the solar value chain, from feedstock to module production, from trade with solar panels to the promotion and construction of turn-key solar power plants...
- South San Joaquin Irrigation District (SSJID)
- SunpowerSunPowerSunPower Corporation designs and manufactures high-efficiency crystalline silicon photovoltaic cells, roof tiles and solar panels based on a silicon all-back-contact solar cell invented at Stanford University. SunPower Corporation is publicly traded on the NASDAQ as SPWRA and SPWRB...
- VestasVestasVestas Wind Systems A/S is a Danish manufacturer, seller, installer, and servicer of wind turbines. It is the largest in the world, but due to very rapid growth of its competitors, its market share decreased from 28% in 2007 to 12.5% in 2009...
- Renewable energy companies on the stock exchange