Scandinavian furniture giant IKEA has cancelled its domestic solar PV supply deal with beleaguered Chinese thin-film module manufacturer Hanergy.
An IKEA spokesperson confirmed to Solar Power Portal this afternoon that it had chosen not to renew its solar supply contract with Hanergy, little more than three years after striking the partnership.
In a statement, IKEA said the deal between the two companies had ended on 1 November and IKEA was to now pursue a "new business model".
"Based on the successful roll out and to ensure IKEA Group has a growth plan in place for the future, we have evaluated our business model, starting in the UK. A new business model has been decided upon, which includes the decision not to renew the contract with Hanergy Solar UK when their current contract ends on 1st November 2015.
"IKEA group’s priority now is to work collaboratively with Hanergy Solar UK during the phase out, in order to ensure the best interests of customers and we are working with the local team at Hanergy Solar UK to agree a transition time plan to ensure a smooth transition for our visitors, their customers and store teams," the statement read.
IKEA and Hanergy originally partnered in September 2012 in a deal which was ultimately so successful that the furniture manufacturer elected to expand its sales of solar equipment into eight additional markets last year.
But since then Hanergy's share price has collapsed prompting an investigation by Hong Kong’s Securities and Futures Commission and six months of claim and counterclaim between the financial authority and Hanergy Thin Film chairman Li Hejun. Trading of Hanergy shares remains suspended.