- Press Releases
August 1 (Renewables Now) - Manz AG (ETR:M5Z) has decided to discontinue the further development of the copper indium gallium selenium (CIGS) thin-film solar technology after terminating negotiations with a Chinese customer on the completion of a large-scale solar project.
The German engineer and PV equipment manufacturer said on Friday it has booked a EUR-23.2-million (USD 23.65m) non-cash impairment on the CIGSfab project that it was implementing for Chinese partner Chongqing Shenhua Thin Film Solar Technology Co Ltd.
In 2017, Manz launched the major project for the Chinese partner with a planned order volume of around EUR 218 million but the work on it was interrupted in December 2020 at the customer's request. By then, the German manufacturer had received payments of around EUR 175 million but had done work worth EUR 198 million.
Manz decided to terminate the talks on the outstanding payment as it was unable to reach a mutual solution.
The cooperation agreed between Manz, one of Chongqing Shenhua's shareholders, Shanghai Electric Group (SEHK:2727), and Shenhua Group Co Ltd in 2017 included a CIGS production line with a capacity of 306 MW and another one for a CIGS R&D line with 44 MW of capacity.
After the decision to abandon the development of the CIGS thin-film solar technology, Manz will focus on its growth strategy in the automotive and electromobility, battery manufacturing, electronics, energy, and medical technology industries.
Due to the decision and its impact on earnings development, Manz will revise its outlook for 2022.
(EUR 1 = USD 1.020)