Meyer Burger Technology AG has encountered a significant blow as its largest client, D.E. Shaw Renewable Investments (DESRI), decided to terminate its master supply agreement.
This decision, disclosed by Meyer Burger in a statement, is expected to severely impact the Swiss solar products manufacturer's ongoing financial restructuring efforts, which were already progressing.
In 2022, DESRI had agreed to purchase between 3.75 GW and 5 GW of solar modules from Meyer Burger between 2024 and 2029, a deal that had prompted the manufacturer to accelerate the expansion of its module factory in Goodyear, Arizona.
However, DESRI's decision to pull out of the agreement poses a serious threat to the company's future, which is already in the midst of a major financial overhaul. Meyer Burger cautioned that if the restructuring fails, the company may be unable to continue its operations.
This setback follows a series of difficulties for Meyer Burger, including the abandonment of plans for a 2-GW solar cell factory in the US and the closure of its module production in Germany earlier this year. The company's shares plummeted by 60.65%, dropping to CHF 0.461, which reflects a market capitalization of only CHF 14.6 million (USD 16.4 million / EUR 15.5 million).
The news also coincides with challenges faced by SMA Solar Technology AG, which recently announced plans to cut up to 1,100 jobs in response to the tough market conditions for its Home and Commercial & Industrial (C&I) segments.
