Meyer Burger Technology AG, a long-time pioneer and technology leader in the global photovoltaic industry, has prepared a plan to cut losses in Europe and focus on profitable growth in the U.S. together with its existing and potentially new offtake and industrial partners. 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 commercialization of its cutting-edge technology. Such partnerships would allow for faster growth with less capital requirements while strengthening the local U.S. supply chain.
Part of the plan would unfortunately be the closure of one of Europe’s largest operational solar module production sites in Freiberg, Germany, as early as beginning of April 2024, affecting approximately 500 people. 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. The solar cell production in Thalheim (Bitterfeld-Wolfen), Germany, would continue to support production ramp-up of U.S. solar module manufacturing in Goodyear, U.S. 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.
Meyer Burger plans to enter into discussions with all stakeholders. 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.
Gunter Erfurt, CEO of Meyer Burger explained: “In the U.S., we can take full advantage of our leading technology position, resulting in substantial interest by partners and supported by favourable industry policies. Given 5.4 GW of order book under offtake agreements and a potential to generate EBITDA at roughly CHF 250m in 2026, we are able to grow a profitable business, providing a positive outlook for our shareholders. The expansion of the U.S. 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.”
- Following the severe impact of the market distortion in Europe, Meyer Burger currently anticipates total sales of approximately CHF 135m for the 2023 fiscal year with an EBITDA loss of at least CHF 126m and a year-end cash position of around CHF 150m.
- Meyer Burger is driving growth of the U.S. business serviced by its leading R&D and equipment manufacturing at its sites in Europe; ready to close its module production in Germany to eliminate unsustainable losses in the absence of resilience measures; cell production will continue in Germany in order to support ramp-up of U.S. module production.
- Meyer Burger is focusing on strategic options to enhance its long-term growth potential and funding position, such as partnerships with industrial players and technology licensing; Meyer Burger has mandated a globally leading investment bank as an advisor to assist in the strategic process.
- Meyer Burger is in advanced discussions with the German Federal Ministry for Economic Affairs and Climate Protection about Euler Hermes covered export financing and continues to pursue additional funding options, including 45X and U.S. Department of Energy loan. Meyer Burger is also considering raising equity primarily to fund completion of construction of cell and module facilities in the U.S.
- The long-term upsides for Meyer Burger remain highly attractive as the only western solution for high performance hetero-junction technology; the potential in the U.S. alone is substantial with 5.4 GW of offtake agreements.
