Statement of Flagsol GmbH
On December 21, our shareholder Solar Millennium AG announced that they have initiated insolvency proceedings in Germany. We have been approached by some of our customers and friends who asked, if the failure of Solar Millennium AG might also affect Flagsol GmbH and its subsidiaries – and we would take the opportunity to explain our situation as follows:
As a separate legal entity Flagsol has business relationships with Solar Millennium AG but is not linked to the insolvency of Solar Millennium AG.
Unfortunately, Solar Millennium failed to achieve its ambitious goals to develop and finance the world´s largest CSP plant in California, USA – the Blythe project. Thereafter, the promising attempts to sell Solar Millennium´s US assets took longer than originally expected and are still pending. A further failure to achieve financial close for the Spanish Extremasol CSP-project in December finally overstretched Solar Millennium´s financial means. We respect the professional decision of the Solar Millennium AG board to file for insolvency in such a situation in order to restructure the company´s financial affairs.
Apart from Solar Millennium AG, Flagsol has another shareholder - German based Ferrostaal AG, a multinational provider of industrial services. Ferrostaal AG has overcome demanding years and is now again facing a promising future with a new 100% shareholder about to step in.
The business of Flagsol is different from Solar Millenniums: Whilst Solar Millennium focuses solely on project development, open for various technologies including PV, Flagsol has proven skills in CSP technology, engineering and EPC-construction of CSP and Industrial Heat Plants. The entire organization of Flagsol is a fully fledged independent setup that has no overlap with Solar Millennium. Flagsol is confident that CSP is the more sustainable and finally more economical technology. Building such plants requires reliable and complex skills as Flagsol has proven to have. This unique selling point will help Flagsol to readjust its business relationships after the default of Solar Millennium and will assure the future of Flagsol.
