Solar energy company Meyer Burger wants to close its German factory and needs new money

Solar energy company Meyer Burger is preparing to close module production in Germany. The company also needs new money.

According to preliminary figures, Meyer Burger expects a turnover of approximately 135 million francs for the past financial year 2023. Operationally, the company expects an operating loss before depreciation (EBITDA) of at least 126 million francs. The reason for the poor result was market disruptions in Europe, it said in a statement on Wednesday.

Due to deteriorating conditions in Europe, Meyer Burger is forced to stop module production in Freiberg, East Germany. Up to 500 employees could lose their jobs there. The closure could take place as early as April 2024. However, the final decision will not be made until the second half of February, it was said.

Focus on the US

The production of solar cells in Thalheim is not affected by closures. On the other hand, the growth of American business will be further promoted. Meyer Burger has also begun discussions with potential strategic partners to accelerate marketing of the technology.

The cash position at the end of 2023 was only about 150 million francs, the group wrote. However, according to current forecasts, the company needs around 450 million francs in cash to achieve positive cash flow. Meyer Burger has offered various financing options for this.

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

Equity financing – such as a rights issue, private placements or other forms of equity-based financing – are also other options, the report said. (rbu/sda/awp)