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KOREA's LG Electronics and Germany's Conergy AG have entered into a joint venture to manufacture solar modules. The project is expected to get underway by the end of the uyear.

Under the deal, LG would hold a 75% stake in Conergy's solar module plant in Frankfurt and Conergy will retain 25 per cent. The plant is currently in the ramp-up phase.

LG will bring to the venture its R&D knowledge, including several years of R&D in various photovoltaic technologies. It will also leverage its expertise in mass manufacturing in similar industries such as flat panel displays.

For its part, Conergy will provide access to the market through its distribution franchise that spans over 20 countries over five continents.

LG's head of Solar Cell Business, Kwan Shik Cho, said the joint venture provided LG with a unique opportunity to make a quick and effective entry into the solar industry with a leading downstream company as its partner.

“This is an opportunity for us to take the lead in the solar technology market right from the start. Contributing our technology and operational expertise to the joint venture allows us to enter the imndustry much faster and with better valuations than would simply acquiring a stand-alone solar module manufacturer,” he said.

“In addition, this partnership provides us with the strategic advantage in that we gain Conergy – the leading global downstream player – as a long-term partner.”

Conergy CEO Dieter Ammer also pointed to the benefits of the long-term nature of the partnership.

He said: “This strategic alliance will also help us further develop into a leading provider withtin the photoltaic market. This would also mean moving significantly further in our realignment programme, with a clear focus on downstream activities.”

Conergy was established in 1998 in Hamburg and has become one of Europe's biggest suppliers of solar energy and otjet brenewable energies, and a world leader in solar systems integration'

LG is a global leader and technology innovator in consumer electrionics, home appliances and mobile communications. It employs 82,000 people in 114 operations, including 82 subsitiaries around the world, and has global sales of more than US$44 billion.