PRAMAC - PRAMAC to produce solar energy - important investment aim at renewable energy

PRAMAC to produce solar energy - important investment aim at renewable energy

Release date: December 2007

Pramac S.p.A., a leading group in the sector of production and distribution of power units and also active in the sector of handling equipment, today signed an agreement for the purchase of a plant that manufactures photovoltaic panels.

The agreement includes the supply of a full turn-key production line with an initial yearly capacity of 30 MW and an option to expand to 60MW. The contract, of a total amount of € 70 million, was stipulated by the newly formed Pramac Swiss, wholly controlled by the parent company Pramac SpA, and OC Oerlikon Balzers AG, leading Swiss company in the solar sector, and covers the purchase of a photovoltaic panel production system for modules using the micromorph thin film technology. The two Companies also defined an agreement for another option to develop up to 120 MW by 2011.

The plant is expected to begin production activities in January 2009. The plant will be located in Canton Ticino on grounds of over 30,000 m2, 15,000 of which roofed over, and will initially employ about 140 people. Initially, the plant will produce 250,000 modules per year, with an average capacity of 125 Wp each.

In addition, the Canton Ticino Department of Finance and Economy is expected to award a grant to Pramac Swiss, based on the laws governing economic innovation and job creation, whose size shall be determined following the approval of the new “Credito Quadro” law.

This investment could allow Pramac to become one of the leading suppliers of photovoltaic energy systems in Italy and in Europe, thanks to a new technology that provides several advantages. Photovoltaic panels using “thin film”, like the ones that are the object of the contract, are transparent, so they can be mounted as outer surface or as rooftop for entire buildings (building integration). They also offer lower cost production of electricity than the traditional silicon-based cells. “Thin film” consists of a transparent film similar to those used for wrapping food, pressed between two sheets of glass. The film, made of Micromorph silicon, produces electricity when struck by the sun’s rays. Compared to traditional silicon-based photovoltaic cells, the Micromorph thin film costs less and compared to the traditional Amorph is more efficient: in fact, it captures 10% of the solar energy instead of the almost 6% captured by traditional Amorph solar panels.

In this operation, Pramac was assisted by Arthur D Little as financial advisor and by Baker & McKENZIE as legal advisor.

“We made this important investment because we firmly believe in renewable energy – said Paolo Campinoti, Pramac’s managing director – because it’s still a very young market and will allow us great growth. The new technology we are offering will provide lower costs and higher yields than the traditional system. In our view, this is an important step in the direction of our company’s natural development, and a further confirmation that we are keeping the promises we made at the time of the initial public offering.”

For more information please visit:
ecopower.pramac.com

Safe harbor

Certain statements in this release may relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of PRAMAC to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will" and "expect" or other similar words and phrases often identify forward-looking statements made on behalf of PRAMAC. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors. We do not undertake to update our forward-looking statements.