Komax Group has taken its first step away from the solar industry, selling its 51% stake in joint venture (JV) company Komax Jinchen to its Chinese JV partner, Yingkou Jinchen.
Komax Group’s head of investor relations Marco Knuchel told PV Tech by telephone that Komax Jinchen is a relatively small segment of the overall solar business, producing laminators locally for the Chinese market. The significance of the sale, as far as Komax is concerned comes from it being the first successfully sold segment of Komax Solar. The deal however remains subject to approval by authorities in China. Financial details of the deal have not been revealed.
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In August last year the company announced its intention to sell Komax Solar which manufacturers PV stringer assembly equipment. Yesterday Komax released its full 2013 financial results, which reported a “pleasingly strong improvement” in operating results for business segments including Komax Solar and Komax Medtech, but reiterated the company’s intention to sell the solar business.
According to Komax, the board of directors took the view last summer that the risk profile of working in solar does not “fit with the objectives of the roup” while the solar business tied up resources that the directors felt could be better used elsewhere within Komax.
The group observed in its annual report that while demand for solar modules was once again rising in 2013, overcapacity remained, leaving demand for new equipment relatively low. Despite this, the company claims it was able to evade what it called the “negative industry trend”, with results improving, although losses still remained.
Komax described doing business against an industry backdrop of around 10GW overcapacity in module production globally and a year-on-year decline in demand for manufacturing equipment, meaning the company had little choice but to account for significant risk of default on payments by only taking orders that came with adequate assurances of financial security.
Solar was reported to make up 6% of the parent company’s net sales, with the company’s wire business comprising 74% of net sales and Medtech 20%.
Net sales for Komax Solar rose in 2013 to CHF20.2 million (US$22.8 million), more than doubling from 2012 when the figure was CHF9.9 million (US$11.17 million). Earnings still ran at a loss, although significantly less so than in 2012. Earnings before inflation and tax (EBIT) for 2013 was CHF-9.7 million (US$-10.95 million), an improvement of CHF11.5 million (US$12.98 million) on 2012, when EBIT was at CHF-21.2 million (US$-23.93 million). This improvement came largely as a result of successful cost-cutting measures, Komax claimed.
In January PV Tech reported that Komax Solar's order intake for 2013 reached CHF24.4 million (US$26.7 million), up from CHF9.0 million (US$9.8 million) in 2012.
Komax asserted in the annual report that “massive surplus capacity” worldwide in solar is unlikely to be eliminated before 2015, with spending on equipment also unlikely to return to pre-2011 levels before then. The company did say that falling prices had resulted in a commensurate drop in costs for solar energy, increasing the sector’s appeal.
According to Komax, the solar energy industry still retains “medium and long-term prospects for robust growth”. The company also stated in its annual report that “there is no doubt that the photovoltaic industry will retain its appeal in the long term”.