Conergy AG (CGYK:US), a German solar panel maker, said it’s confident it can avoid joining the wave of bankruptcies in the country’s photovoltaic industry.
Conergy has been owned by creditors since July after a debt-to-equity swap and restructuring measures that resulted in “initial positive effects,” Chief Executive Officer Philip Comberg said. The Hamburg-based company expects to generate positive first-quarter net cash flow for the first time since 2005, he said.
“Despite the continuing difficult market environment we remain carefully optimistic for 2012,” Comberg said in an e- mailed statement.
Conergy has been cutting jobs and halting production of wafers and cells to focus on end-product modules, project development in non-German markets and services in a bid to become profitable. The company is targeting markets in North America and Asia to drive future growth, Antje Stephan, a spokeswoman, said today by phone.
German solar companies are struggling with reduced state aid and competition from Chinese companies led by Suntech Power Holdings Co. that have expanded capacity, creating a glut in solar panels. Conergy’s peer Q-Cells SE (QCE), once the largest solar- cell maker, said it plans to file for insolvency as early as today. Solon SE (SOO1), Solar Millennium AG (S2M) and Solarhybrid AG (SHL) all filed for insolvency in the past four months.
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