Photo by Manz Automation

By Jeanny Lim (swied@infothe.com)

Manz Automation AG is one of the world’s leading technology providers for the photovoltaic and Flat Panel Display industries (FPD). Based on our long-term experience in the fundamental technologies of robotics, control technology, image processing and quality control systems, as well as laser processing technology and wet chemical processes, the Manz Group provides innovative system solutions for high-tech growth markets worldwide. As one of the market leading companies for integrated system solutions in the PV and FPD industry, we manufacture processing and automation solutions that set standards. We developed the first automation system for processing crystalline solar cells in 1988 and have been constantly developing trendsetting solutions since then.

Therewith, the strategic repositioning process from an automation specialist to a specialist in integrated production solutions was initiated several years ago. With the recently announced ‘Exclusive Know-how Licensing and Strategic Alliance Agreement’ with Wurth Solar, we are continuing along that path. Manz Automation aims to use this strategic alliance to become the market leader as a provider of fully integrated, cost-effective CIGS production lines, the so-called CIGSfab. This gives us a secure position from which to develop new, emerging markets such as Asia, as well as in Europe and the Americas.

This strategic alliance agreement gives Manz Automation the exclusive rights to use Wurth Solar’s CIGS production technology and means that Manz is now the only provider who can currently offer an integrated, fully operational production line for CIGS solar modules that generates profit. Thereby, Wurth is contributing its more than ten years of experience in developing and producing CIGS thin-film modules to this strategic alliance. With this framework of cooperation, Manz has now the exclusive access to the know-how of the leading international research institute for CIGS thin-film technology--the Zentrum fr Sonnenenergie- und Wasserstoff-Forschung Baden-Wrttemberg (ZSW)--which currently holds the world record for CIGS technology, with the highest efficiency of cells recorded to date to be 20.3%. This means that CIGS is the thin-film technology with the highest efficiency potential and currently the lowest production costs of all turnkey lines. This provides maximum investment security for all our clients. The strategic alliance is initially laid out for a period of ten years.

The so far unique cooperation of a world-leading scientific research institute, a worldwide leading manufacturer of CIGS modules and one of the world’s leading machine manufacturers will bring the CIGS technology to a breakthrough and opens up an enormous market potential.

The main reasons for going into partnership lie in the strategic focus of both companies. While Wurth Solar has been successfully producing high-quality CIGS modules for years, the partnership opens an opportunity for Manz Automation to offer economical thin-film production lines for the serial manufacture of CIGS modules. The high international value creation at Manz combined with Wurth’s years of experience in the manufacture and optimization of production lines play a key role here. With this partnership we can provide our customers with an ambitious, yet trustworthy, cost and production roadmap. We intend to constantly improve module output while, at the same time, significantly lowering costs--and this will be the key to our mutual success.

Could you update our readers on the current status on the German solar market? How’s it going with the FiT revision?

At the start of this year, we once again lead a heated discussion regarding feed-in tariff rates in Germany. The dilemma here is not that subsidization in Germany is not good enough, but, according to some politicians, that it is ‘too good’. In 2009, the number of PV systems installed in Germany increased more than anywhere else worldwide; therefore, the tariff rate for the turn of the year should have been changed to accommodate the new market conditions. Such a change would largely be welcomed by the industry as a way to make solar energy fit for competition sooner.

However, both politicians and representatives from the sector protested against the planned blanket rate reduction. Although the compromise that was made here, which anticipates reductions of up to 25% following this summer, is doubtless an ambitious solution, it will not choke the market. German and European firms are still well set for the international competition, and the German market will be able to retain, and even significantly improve, its position as the most important sales market worldwide. In the face of these upcoming challenges, we confirmed in our resolutions that Manz Automation must develop new sales markets and, as in the case of Wurth Solar, constantly widen its business sector.

In your opinion, what does your partnership mean to the market? What do you aim for through this alliance?

As mentioned above, cooperation on this scale has never been seen before. A worldwide leading machine manufacturer, a module manufacturer and a renowned research center have never formed a similar strategic alliance. With the CIGSfabs, we will be the only company worldwide to offer production lines that are not only cost efficient, but have also proved themselves effective in 24/7 operation for years. This way we will leverage CIGS technology, which market experts have rated as currently the most promising thin-film technology due to its enormous potential in terms of efficiency and cost reduction potential, as well as providing our customers with maximum investment security. Alongside practical production testing, Wurth Solar also offers extensive technical support in terms of 20 man-years, as well as ramp up expertise and assistance in all stages from planning to realization as well as the initial operation of production lines. This cooperation is complimented perfectly by the research background that the ZSW provides through their existing contracts with Wurth. We are convinced that this partnership will help revolutionize the thin-film industry worldwide.

What are your expectations for the global PV market for the latter half of this year and the near future?

The photovoltaic industry has become a worldwide growth market, and has even increased during the financial crisis. Each year the industry creates thousands of new, ‘crisis-proof’ jobs with glowing prospects for the future. We are convinced that this trend will continue throughout the coming years, and even the coming decades. Alongside the German market, which experts predict will experience another year of record installations, other attractive sales regions are developing worldwide. For example the U.S.A., where up till now the market has been developing much slower than many experts have expected, will experience a change in fortunes for the better. The same is true for Asia: China’s sales market has been gaining strength, and with this an immense economical and ecological potential. On the other hand, India is one of the core sales areas we are concentrating on. The development on the Indian subcontinent promises tremendous future potential for our company. In respect to the shares of the technological sectors, experts and market research organizations have been predicting a further shift towards thin-film, thus confirming our belief in our own strategy.

Among a variety of PV market sectors such as utility-scale projects and BIPV, what do you think will be the most important one?

Any future shifts in the market sectors will show significant regional differences. With our machines, both those producing crystalline and thin-film cells, we are particularly widely positioned. In the field of CIGS technologies, there are not only sales channels in the large-system and building integrated sectors, but CIGS is also considered a promising alternative in the traditional roof-mounted systems sectors. Therefore, the target groups of CIGSfab’s buyers are to be found both internationally and across all sectors.

What would be your next step in terms of strategic alliance with other PV players?

We are not planning any further alliances with other PV players, so far. However, we are working close together with a number of cell manufacturers to improve the actual process and to develope completely new manufacturing processes. There is still plenty of room to increase the efficiency and to reduce the cost of PV.

Due to our strong engineering and R&D background, Manz is very well-positioned to be one of the key drivers of innovation in this field.

What do you think is needed to reach grid parity in solar PV?

Reaching grid-parity will be an important milestone for the photovoltaic industry. All of our corporate efforts are aimed at reducing costs, and therewith making solar electricity ready to compete economically with conventional electricity. The deciding factor here is the ability to further reduce the production costs for solar modules and components. We are already on the way to achieving this with our customers. Furthermore, CIGS is currently considered one of the technologies with the highest cost reduction potential of all PV technologies. The output potential of modern solar energy systems is also a decisive factor. We are keeping both factors in mind in our cooperation with Wurth Solar.

Lastly, where do you see Manz Automation in the global CIGS market and in the global solar industry in 5 years from now?

By now, we are one of the leading equipment suppliers in the thin-film and crystalline PV industry. This position is clearly to be secured and expanded within the next years, even in an increasingly competitive market environment. But besides holding the status quo, our plan is to become a market leader in the terms of fully integrated production solutions and to hold the market leading position as a provider of CIGS production lines.

Jeanny Lim is Editor-in-Chief of InterPV. Send your comments to swied@infothe.com.

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