German equipment provider Manz AG announced that it has stopped further development of its CIGS thin-film PV technology and will terminate its involvement in the wider PV market because it has been unable to obtain outstanding payments from its Chinese partner Chongqing Shenhua Thin Film Solar Technology Co. Ltd. Manz will be writing off EUR 23.3 million (USD 23.6 million) after failing to reach an agreement with Shenhua.
Manz has been providing services to support the development of Shenhua’s production lines for CIGS PV products. A portion of Shenhua’s production capacity has been in operation since 2017. Manz claims that the cost of its services came to a total of EUR 198 million, but Shenhua only paid around EUR 175 million. Further works on the site were suspended in December 2020 at the request of Shenhua. Manz now demands all related contractual obligations to be met and the outstanding amount to be paid.
Manz intends to take Shenhua to court and has decided to exit the PV market altogether. Manz’s operation and finances have been significantly affected by Shenhua’s unwillingness to pay the outstanding amount. Martin Drasch, CEO of Manz, said that the company will now concentrate on developing solutions for electric mobility, battery manufacturing, electronics, energy, and medical applications.