Swiss-based photovoltaic (PV) module manufacturer Meyer Burger has announced the closure of its Freiburg factory in Germany, citing sustained losses in Europe and challenges posed by inexpensive Chinese imports. The decision underscores the company's strategic shift towards the United States, with plans to establish new plants while seeking financing avenues to bolster its American operations.
“As there has not yet been any decision on policy support measures to remediate current market distortions created by oversupply and dumping prices of solar modules, the group has decided to start preparations for the closure of its Freiburg site, which would take effect in April,” a company spokesperson stated.
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The move involves halting production at the Freiburg site by the first half of March, leading to anticipated cost savings from April onwards. However, the company assured that sales activities in Europe remain unaffected, with customers continuing to receive full-product warranties as usual.
To finance the completion of its facilities in Colorado and Arizona, Meyer Burger is seeking shareholder approval for a rights issue of up to CHF250m. CEO Gunter Erfurt expressed optimism about the proposal, highlighting its attractiveness to investors seeking opportunities in the burgeoning US solar market.
“I am pleased that today we are making concrete progress on our approach outlined on January 17,” Erfurt remarked. “The rights issue is an attractive proposal to our investors as they can invest into the highly attractive US business where we are positioned to have the potential to grow a profitable business.”
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Erfurt emphasized the strategic advantage of focusing on the US market, citing independence from European political decisions. The company aims to bridge a funding gap of CHF450m through various means, including export agency credit guarantees and US government incentives.
Reflecting investor confidence in Meyer Burger's US expansion strategy, Sentis Capital Cell 3 PC, the company's largest shareholder, reaffirmed its support. “Due to a lack of European protection against unfair competition from China, nearly four years of hard work by great employees in Europe is at risk,” the board of Sentis Capital Cell 3 PC stated.
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The board underscored the bipartisan commitment in the US to protect domestic companies against unfair competition, expressing trust in Meyer Burger's management team to capitalize on the opportunities presented by the American market.
