Meyer Burger, a Swiss solar panel manufacturer, has canceled plans for a production facility in Colorado, citing financial unviability due to recent developments. The company will instead concentrate on its existing module production plant in Goodyear, Arizona, which is already in the ramp-up phase, and maintain operations at its cell production site in Thalheim (Bitterfeld-Wolfen), Germany.
The Thalheim facility, initially slated for reduced operations, will continue to be the primary supplier of solar cells to the Goodyear plant. “Under the current market conditions, these solar cells are the most economical option for supplying the module production in Goodyear,” the company stated. Meyer Burger believes this setup will allow it to meet existing long-term purchase contracts and fully utilize production capacity in Goodyear.
Plans to expand Goodyear's nominal module production capacity by an additional 0.7 gigawatts have been suspended but remain an option depending on the company's restructuring program and ongoing discussions with customers.
The company will continue to pursue debt financing through the monetization of 45X tax credits, though on a reduced scale, focusing on module production in the U.S. As a result, Meyer Burger's financing needs are expected to be significantly lower, reducing the financing gap anticipated after the capital increase scheduled for April 2024.
In light of these strategic shifts, Meyer Burger's Board of Directors has directed management to develop a comprehensive restructuring and cost-cutting program aimed at achieving sustainable profitability. Consequently, the company expects its medium-term EBITDA target and debt ratio to be significantly lower than previously projected.
The publication of Meyer Burger's half-year results, initially scheduled for September 16, 2024, has been postponed to September 30, 2024, or potentially later, pending approval from SIX Exchange Regulation.
Additionally, Mark Kerekes, a member of the Board of Directors, has resigned from his position. “We would like to thank Mark Kerekes for his very constructive cooperation and significant contributions during his membership of the Board of Directors,” said Franz Richter, chairman of the Board of Directors.
