The Swiss solar equipment manufacturer Meyer Burger is preparing to close module production in Germany. In the event of a lack of political measures to create fair competitive conditions, the company wants to take action against the current losses, as Meyer Burger announced on Wednesday. Part of the plan is to close the factory in Freiberg, Germany, with around 500 employees, at the beginning of April.
This is the largest operational solar module production in Europe. A final decision would have to be made by the second half of February 2024.
Solar cell production in Thalheim, Germany, should continue to support the ramp-up of solar module production at the US factory in Goodyear. Mechanical engineering and research and development sites in Switzerland and Germany would not be affected by these measures.
The reason for the measure is a sharp increase in Chinese production overcapacity as well as trade restrictions imposed by India and the USA. These led to a significant oversupply and distortion on the European solar market last year. Meyer Burger called for political measures to ensure better competitive conditions.
The company needs 450 million francs
The company expects an operating loss (Ebitda) of at least 126 million francs for 2023 with sales of 135 million francs. Meyer Burger ended 2023 with a cash balance of around 150 million francs and needs financing of around 450 million francs until the company achieves positive cash flow. This is expected for 2025.
Meyer Burger commissioned an investment bank to examine strategic options and improve the financing position. The company could enter into partnerships with industrial companies or grant technology licenses.
The company is in advanced discussions with the German Federal Ministry for Economic Affairs and Climate Protection about export financing covered by Euler Hermes and is also pursuing additional financing options such as loans from the US Department of Energy. In addition, Meyer Burger is considering raising equity capital – primarily to finance the construction of cell and module plants in the USA.