Meyer Burger Unveils Restructuring Plan Amid European Solar Challenges, Shifts Focus to US
The company aims to cut losses and refocus on profitable growth in the US, considering strategic partnerships to expedite the commercialization of its advanced technology.
January 18, 2024. By Abha Rustagi
The company aims to cut losses and refocus on profitable growth in the US, considering strategic partnerships to expedite the commercialization of its advanced technology. As part of the plan, Meyer Burger is contemplating the closure of one of Europe's largest solar module production sites in Freiberg, Germany, by April 2024, affecting approximately 500 employees.
The final decision, expected by the second half of February 2024, is contingent on the absence of sufficient measures to create a level playing field in Europe.
The strategic shift towards the US involves leveraging Meyer Burger's leading technology position and substantial interest from partners. The solar module manufacturing site in Goodyear, US, is slated to begin production in the second quarter of 2024.
The company's 2023 fiscal year is anticipated to conclude with an EBITDA loss of at least CHF 126 million, primarily attributed to challenges in the European solar market, including oversupply and trade restrictions.
To address financial requirements, Meyer Burger, with a cash position of approximately CHF 150 million at the end of 2023, is exploring funding options such as discussions with the German Federal Ministry for Economic Affairs and Climate Protection, potential US tax credits, and loans from the US Department of Energy. Additionally, the company is considering strategic partnerships and engaging in discussions with selected potential partners to accelerate its restructuring plan.
Gunter Erfurt, CEO of Meyer Burger, emphasized the company's commitment to the highly attractive US market while expressing a reluctance to close the state-of-the-art module production in Germany. However, in the absence of firm commitments from lawmakers to create a level playing field, Meyer Burger is prepared to execute its restructuring plan in Germany.
The company seeks to navigate the challenges of the European solar market by capitalizing on the opportunities presented in the thriving US solar industry and exploring strategic partnerships for sustainable growth.
please contact: contact@energetica-india.net.
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