Cencorp - Company Announcement

TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION TO FUND CENCORP’S PHOTOVOLTAIC MODULE BUSINESS – CENCORP IS TARGETING TO OPEN A PHOTOVOLTAIC MODULE PLANT BASED ON THE COMPANY’S OWN LAYOUT IN FINLAND IN EARLY 2014

Cencorp Corporation    Stock Exchange Release 20 December 2012  at 15.20
Finnish time 



TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION TO FUND
CENCORP'S PHOTOVOLTAIC MODULE BUSINESS - CENCORP IS TARGETING TO OPEN A
PHOTOVOLTAIC MODULE PLANT BASED ON THE COMPANY'S OWN LAYOUT IN FINLAND IN EARLY
2014 



The Finnish Funding Agency for Technology and Innovation - Tekes gives Cencorp
a loan, of ca. 3 million Euros, to develop business and production model
relating to the design and production of cost effective photovoltaic modules as
well as to the development of module components. The loan can amount maximum to
50 percent of the project's total costs which are estimated to be ca. 6 million
Euros. The loan will be withdrawn in the course of the years 2013 and 2014. The
loan period is ten years. 



Among other things, the Tekes funding decision is subject to capital
investments, amounting totally to 3 million Euros at the minimum, to be made in
Cencorp during the period from 20 September 2012 to 30 June 2013. Half of the
required investments was already secured on 3 December 2012 as Savcor Group Oy
and SCI Invest Oy, a company under the control of Iikka Savisalo, the CEO of
Cencorp, subscribed totally 1.5 million Euros of Cencorp's convertible bond
which is a capital loan. 



Iikka Savisalo, Cencorp's CEO:”We are very happy to get an investor, like Tekes
who understands technology and related opportunities, in the photovoltaic
module project. I believe the cooperation with Tekes will clearly accelerate
Cencorp's transition into a technology company providing Cleantech applications
according to the company's strategy. Cencorp's most developed Cleantech
applications are photovoltaic modules and relating components and production
technology. In the production of efficient next generation photovoltaic modules
automation will play a major role. In the second half of the year 2012 Cencorp
has developed fully automated production concept for photovoltaic modules. With
the funding, secured now, Cencorp will start a development project aiming at
manufacturing and implementing a photovoltaic module production line based on
Cencorp's own layout. The factory's location will probably be either Mikkeli or
Salo. Cencorp has already operations in both cities. The plant is due to be
ready in early 2014 and according to my current estimations the plant's
turnover will exceed 50 million Euros when operating at full capacity. Sales
negotiations regarding the plant's production capacity are run with several
foreign operators. Additionally, it is our intention to utilize the plant in
customer presentations and to test production automation applications. The most
potential customers are module manufacturers who are planning to start their
own next generation photovoltaic module production. We believe we will get our
first orders already in 2013”, says Iikka Savisalo, Cencorp's CEO. 



Tekes loan facility will have a positive effect in Cencorp's financing
position. At the same time Cencorp's current transition into a company
developing and providing Cleantech applications requires major investments from
the company. These investments include, among other things, photovoltaic
business transactions agreed with Avery Dennison Corporation and Sunweb Solar
Energy Holding BV upon non-binding Memorandums of Understanding. Thus,
Cencorp's financing position will continue to be tight, based on the current
estimations, until the transition phase has been completed successfully. 



Cencorp's transition from a company manufacturing only production automation
applications and special components into a company that develops and provides
Cleantech applications with a strong market position as provider, using laser
and automation technology, of locally in different market areas produced,
high-quality photovoltaic modules, 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. 



In Mikkeli 20 December 2012





Cencorp Corporation



Board of Directors



For more information, please contact:

Iikka Savisalo, President and CEO, tel. +358 40 521 6082,
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.