Sunlight Group will not proceed with the €1.2 billion investment in the Gigafactory battery factory in Western Macedonia. At the same time, the company's executive responsible for financing the lithium battery factory, Nikos Mantzoufas, is leaving the company.

The main scenario circulating for the cancellation of the deal has to do with the lack of substantial incentives for the investment, while other countries, for example, give more benefits to such investments. A typical example is France, which proposed to the company to make the investment there by giving tax and other kinds of incentives.

As market players tell BnB Daily, another point of concern is the de-lignification in the region, as through this project the next day in Macedonia would be strengthened. 

WHAT FROZE THE INVESTMENT

The same sources cite the following as the main factors for freezing the investment, in addition to the lack of incentives:

• The rise of China and the lack of substantial initiatives by Europe to wean itself off China
• The collapse of Northvolt, a major battery company, despite the fact that it achieved €16 billion in private financing.
• Increased competition from US and Chinese companies
• The possible trade tariffs by Donald Trump that are expected to create turbulence in the markets

THE INVESTMENT

Following this development, the company has already informed the European Union that it will not proceed with the utilisation of the €245 million financing it had secured for this investment. It is recalled that this was a grant from the European Union's Innovation Fund. 

TRANSITION

Meanwhile, the company announced yesterday that it had "achieved a major milestone in its transition process to a fully integrated, global and digital organisation". It said it has successfully implemented 11 SAP S/4HANA modules simultaneously, ensuring full operation without any interruption in its three Greek manufacturing plants, its support operations and its entire Greek business.

It also adds that, through strategic acquisitions made over the past two years, Sunlight "has expanded its capabilities and market presence, focusing on streamlining operations and maximising synergies".

SAP S/4HANA

At the heart of this transition is the implementation of SAP S/4HANA, "an advanced cloud-based ERP platform that supports sustainable growth and operational excellence."

The implementation of SAP S/4HANA started with Sunlight Group's operations in Greece and is gradually being rolled out across its global network, with a target completion date of 2026.

The integration of advanced tools and data analytics is expected to increase operational efficiency by up to 30% in product lifecycle management and 40% in manufacturing efficiency, in conjunction with additional tools currently being implemented.