Meyer Burger, the largest producer of solar panels in Germany, reported that it is ceasing its operations in that country to focus on its United States market. The announcement was made by the company on its official website.
"European market distortion impacts 2023 financials – Meyer Burger to focus on manufacturing footprint in the U.S. and prepare for closure of German module manufacturing," the statement said.
Cell production will continue in Germany in order to support ramp-up of U.S. module production.
The company's decision was due to the losses it had during 2023. "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."
Meyer Burger currently expects to conclude the 2023 fiscal year with an EBITDA loss of at least CHF 126m (preliminary unaudited figure). Given the increase in produced solar modules to 650 MW despite slumped sales, module inventory increased significantly to around 360 MW.
The company's decision, Euractiv explained, comes amid the suspension of subsidies that solar companies had. The media outlet indicated that "within the fractuous government coalition, the liberal FDP party is blocking plans to grant a 'resilience bonus' to would-be manufacturers, amid a continued budget crisis caused by a ruling from Germany’s top court last month which blew a €60 billion [$66 million] hole in the country’s finances."
With this measure, Meyer Burger will put the jobs of at least 500 workers in Germany at risk. Likewise, the company assured that it has several financing options. Meyer Burger needs approximately 450 million Swiss francs ($518 million) until it reaches positive cash flow, which is expected in 2025 if the increase in operations in the United States goes as planned.
In that sense, the company indicated that "Meyer Burger expects potential restructuring costs to be self-funded through the sale of inventory". "Meyer Burger is in advanced discussions with the German Federal Ministry for Economic Affairs and Climate Protection about Euler Hermes covered export financing."
