500 jobs at risk: Swiss solar company wants to close German factory

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According to preliminary figures, Swiss company Meyer Burger expects sales of around 135 million francs for the past fiscal year 2023. Operationally, the company expects an operating loss before depreciation and amortization (EBITDA) of at least 126 million francs. The solar panel manufacturer also reported losses in the past two years. In the statement made on Wednesday, it was stated that the reason for the poor result was market disruptions in Europe.

Due to worsening conditions in Europe, Meyer Burger was forced to stop module production in Freiberg, East Germany. Up to 500 employees there could lose their jobs. Closing could occur as early as April. Solar modules have been produced at the factory in Germany since May 2021. However, it was stated that the final decision will not be made until the second half of February.

Solar cell production in Thalheim is not affected by the closures. Conversely, US business growth needs to be further supported. Meyer Burger has also begun discussions with potential strategic partners to accelerate the marketing of the technology.

Cash is not enough

According to current estimates, the company needs approximately 450 million francs in cash to generate positive cash flow. But this is much more than the company has: its cash position at the end of 2023 was only around 150 million francs, the group wrote. For this purpose, Meyer Burger offered various financing options.

For example, the company is in advanced discussions with the German Ministry of Economy regarding export financing under Euler Hermes. The company also successfully completed the first phase of testing for the Advanced Manufacturing Production Credit and the loan from the U.S. Department of Energy.

Equity financing such as rights issues, private placements or other forms of equity-based financing are other options, it said. (SDA/kae)

Source :Blick