China-based electronics company STGCON is set to acquire German PV module manufacturer Asola Solarpower, which filed for insolvency in January this year.
Asola filed for insolvency citing drop in the price of solar modules in the wake of product oversupply and high restructuring costs, although it continued the operations.
Following the acquisition, STGCON is planning to give a boost to the automotive business of Asola as well as manufacture and sell solar modules, prototypes and special and non-standard module applications.
Commenting on the alliance, STGCON Germany CEO Helmut Teschner stated that the acquisition of the manufacturer reflects a strategic investment for the company that would further its electronics business in the global market.
"The new business model for the classic solar business, developed by the new management, brings us into a convincing win-win situation," added Teschner.
The takeover of Asola by STGCON is expected to be concluded over next few days with the formal transfer of the ownership on 1 July 2013.