Swiss PV manufacturer Meyer Burger has decided to shut down its solar module production (production of photovoltaic cells) in Freiberg, Germany, from March 2024 in a bid to avoid further losses in Europe.
The company indicated the potential shutdown of the plant in January 2024.
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The company is redirecting its efforts towards enhancing its production capabilities in the US.
The company stated: “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 Freiberg site.”
The company anticipates significant cost reductions from April 2024. Despite the production halt in Europe, Meyer Burger’s sales activities on the continent will continue as usual, and customers will still benefit from full product warranties lasting up to 30 years.
The company is now seeking shareholder consent for a rights issue of SFr250m ($283m) to fund the completion of its manufacturing sites in the US states of Colorado and Arizona.
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By GlobalDataThe company aims to bridge a funding shortfall of SFr450m through the rights issue and a potential export agency credit guarantee from the German Government of up to $95m.
It is also targeting an advanced manufacturing production tax credit known as 45X, which would provide $300m with a term of five to six years from a global investment bank.
These financial strategies are intended to finalise the construction of Meyer Burger’s solar cell production facility in Colorado Springs and a solar module manufacturing plant in Goodyear, Arizona.
These two facilities are currently under construction with an expected production capacity of 2GW each.
Meyer Burger CEO Gunter Erfurt stated: “I am pleased that today we are making concrete progress on our approach outlined on 17 January. The rights issue is an attractive proposal to our investors as they can invest in the highly attractive US business where we are positioned to have the potential to grow a profitable business.
“Furthermore, a clearer focus on our US business makes us independent of political decisions in Europe.”
