Cencorp - Company Announcement

-CENCORP'S FIRST PHOTOVOLTAIC MODULE DESIGNED BY THE COMPANY WAS MANUFACTURED IN MIKKELI -DURING THE FIRST HALF OF 2013 CENCORP HAS RECEIVED ORDERS FOR PRODUCTION AUTOMATION APPLICATIONS AMOUNTING TO CA. ONE MILLION EUROS FROM A NEW CUSTOME

Cencorp Corporation           Stock Exchange Release 23 May 2013 at 10.55
Finnish time 

- CENCORP'S FIRST PHOTOVOLTAIC MODULE DESIGNED BY THE COMPANY WAS MANUFACTURED
IN MIKKELI 

- DURING THE FIRST HALF OF 2013 CENCORP HAS RECEIVED ORDERS FOR PRODUCTION
AUTOMATION APPLICATIONS AMOUNTING TO CA. ONE MILLION EUROS FROM A NEW CUSTOMER
OPERATING IN THE CONSUMER ELECTRONICS INDUSTRY 

1. The first photovoltaic module designed by Cencorp was manufactured in Mikkeli

Cencorp has manufactured its first Conductive Back Sheet (”CBS”) photovoltaic
(”PV”) module designed by the company itself. The module will be used for
testing and development purposes. The module is utilizing Cencorp's flexible
circuit and laser drilling technologies. 

”Cencorp's first own PV module that is now ready is manufactured in Mikkeli in
the automated pilot production line that was purchased from Sunweb Solar in
January 2013 and further developed by Cencorp. The new module will be used for
testing and development purposes. According to Cencorp's own tests the module's
performance was as we expected. We are planning to bring the first commercial
ready products to the market in 2013”, says Iikka Savisalo, Cencorp's CEO. 

In relation to Cencorp's cleantech business aiming to utilize solar energy
increasingly the company has previously announced the following: 

Cencorp is going through the biggest transition in the company's history into a
company with main business operations in providing cleantech applications. At
the first stage the company will provide its own component family for
photovoltaic modules, out of which Conductive Back Sheet (CBS) will be first
brought into the market. Additionally, the company is preparing to launch a
next generation photovoltaic module family, based on Cencorp's own CBS
technology and a related fully automated production line. The first fully
automated PV module production line will be taken into use in Mikkeli, Finland
in early 2014. A pilot factory for module production will commence its
operation in Mikkeli already in the next few weeks. Cencorp's own module
structures as well as new module production methods will be tested at the pilot
factory. 

In the cleantech business, particularly in the photovoltaic industry, many big
changes took place in 2012. Many of the European and American solar module
manufacturers were forced to close down due to the Chinese price competition.
Also Chinese manufacturers suffered from the price competition and several
Chinese companies were driven into financial troubles. Due to the price
competition and dumping allegations the authorities both in the US and in
Europe took preventive actions. The US set significant extra tariffs for the
specific Chinese PV modules already last year. EU's exceptionally strong action
plan against the PV module dumping leaked out on 8 May 2013 including company
specific tariffs of 37 - 68 per cent for the Chinese PV modules. However, the
challenging market environment created a unique opportunity for Cencorp to
cost-effectively and fast develop and apply its technology and accelerate its
investment plan not fully completed, yet. 

The growing market combined with decreasing production capacity and the actions
of the authorities are creating an opportunity for Cencorp, utilizing its
cleantech technologies, to achieve a market position in the global cleantech
market. According to external experts' estimations the CBS related market for
PV modules may grow up to USD 25 billion by 2020. Cencorp believes it will
achieve a position in this market provided its transition into a cleantech
company proceeds as planned and it has sufficient capital required for the
growth. 

For about one year Cencorp has been developing fully automated production
technology for CBS modules. The technology has been introduced to almost all of
the most significant solar module manufacturers. Cencorp has taken actions to
patent the related innovations. There is only a limited amount of competitors
in the market and the customer feedback on Cencorp's production technology has
been positive. Cencorp's production technology has a special niche: production
lines have high level of automation, they are easy to use and require only
little space. 

The third product family in Cencorp's solar module strategy includes a series
of PV modules based on Cencorp's own CBS technology. The solar module structure
that bases on the technology Cencorp acquired from Sunweb Solar at the end of
January 2013 and that has been further developed by Cencorp is one of the most
efficient according to the international experts Cencorp has quoted. The first
ready products are expected to be introduced in the markets during 2013.
Cencorp is negotiating with several traditional energy companies and with
global companies producing solar energy on providing module installations for
their use. 

Cencorp's transition from a company manufacturing only production automation
systems and special components into a company that develops and provides
Cleantech applications using laser and automation technology, a company with a
strong market position as a provider, of locally produced, high-quality
photovoltaic modules and a company operating in various geographical markets,
involves risks. Even though Cencorp's strategy and objectives are based on
market knowledge and technical surveys, the risks are significant and it is not
certain if the company reaches all or part of the targets set for it. Cencorp's
future outlook will be highly dependent on the company's ability to reach the
targeted market position in the global photovoltaic module market as well as on
the company's long-term financing. Cencorp's goal is to reach strong market
position as provider of locally produced high-quality photovoltaic modules. 

Other risks connected to Cencorp have been presented in more detail in the
Interim Report published 15 May 2013 and in the Annual Report for 2012. 



2. During the first half of 2013 Cencorp has received orders for production
automation applications, amounting to ca. one million Euros from a new customer
operating in the consumer electronics industry 

During the first half of 2013 Cencorp has received orders worth of
approximately one million Euros from a new international customer, operating as
a leader of its business within the consumer electronics industry. The order is
for production automation applications and includes several Cencorp 1300SR
stand alone routers. The machines will be delivered to Mexico and Malesia
during the second half of the year 2013. 

”Winning an order from this new remarkable customer is important for Cencorp's
Laser and Automation Solutions segment. Getting repeat-orders, in particular,
has been challenging in the current market environment. The wide coverage of
after sales services Cencorp provides was fundamental in winning the
customership and in receiving the repeat-orders. I expect that in the future
this type of customers will remarkably contribute to the growth of Cencorp Life
Cycle Management segment”, says Iikka Savisalo, Cencorp's CEO. 



In Mikkeli, 23 May 2013

CENCORP CORPORATION
THE BOARD OF DIRECTORS
For more information:
Iikka Savisalo, President and CEO, tel. +358 040 5216082, email
Iikka.savisalo@cencorp.com 



Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com



Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers' production. The product range also
includes EMI shielding solutions, RFID antennas, other flexible circuits
including for example conductive back sheets used in photovoltaic modules and
mobile phone antennas. Cencorp's customers are manufacturers of automotive
electronics, mobile phone antennas and photovoltaic modules as well as
manufacturers operating in telecommunications and in industrial automation.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.