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Meyer Burger is expanding its manufacturing in the US amid impact of market distortion in Europe
Swiss solar photovoltaic module producer Meyer Burger Technology has disclosed plans that involve closing its factory in Freiberg, Germany.
The shutdown could occur as early as the beginning of April 2024, affecting approximately 500 people, the company said.
A final decision would have to be made by the second half of February 2024 in the absence of sufficient measures to create a level playing field in Europe such as a resilience-reward scheme, it added.
Following the severe impact of the market distortion in Europe, Meyer Burger currently anticipates total sales of approximately CHF135m (€143m) for the 2023 fiscal year with an EBITDA loss of at least CHF126m and a year-end cash position of around CHF150m.
Meyer Burger plans to enter into discussions with all stakeholders regarding the closure decision.
“In the event of a closure, necessary positions in engineering, technology, supply chain management and certain other critical functions at the manufacturing site in Freiberg would be offered the option of transferring their contracts to other Meyer Burger entities,” said the company.
The solar cell production facility in Thalheim (Bitterfeld-Wolfen), Germany, would continue to support production ramp-up of US solar module manufacturing in Goodyear.
Equipment manufacturing and R&D sites in Switzerland and Germany would not be affected by these measures and continue to develop and produce technology and equipment to support Meyer Burger’s business outside Europe.
The Freiberg factory closure forms part of plan by Meyer Burger to cut losses in Europe and focus on profitable growth in the US.
It stated: “With a deteriorating market environment in Europe, continuing with full-scale European solar manufacturing is not sustainable for the time being.”
In parallel, Meyer Burger is considering strategic partnerships to accelerate the commercialisation of its technology.
Such collaborations would allow for faster growth with less capital requirements while strengthening the local US supply chain.
Meyer Burger chief executive Gunter Erfurt said: “In the US, we can take full advantage of our leading technology position, resulting in substantial interest by partners and supported by favourable industry policies.
“Given 5.4GW of order book under offtake agreements and a potential to generate EBITDA at roughly CHF250m in 2026, we are able to grow a profitable business, providing a positive outlook for our shareholders.
“The expansion of the US business is currently proceeding as planned with the ramp-up of our solar module production site in Goodyear, expected to start in the second quarter of 2024.” |
