Ferro Corp. has sold assets related to its solar pastes business to Heraeus, a privately owned global precious metals and technology company based in Hanau, Germany. Heraeus offers an existing line of solar pastes that competed with Ferro's products.
Last fall, Ferro said it was exploring strategic options for the solar pastes business in an effort to eliminate the negative impact from the business on earnings and cashflow. The market for conductive pastes used in the manufacture of solar cells has declined substantially since 2011, as the solar power panel industry has struggled with overcapacity and falling prices, the company notes.
The Heraeus sale is expected to help Ferro eliminate a significant drag on its earnings, allowing for investment in other areas and improving earnings.