The solar energy company Meyer Burger suffered a huge loss last year. Module production at the Freiberg site in Saxony was stopped as planned in mid-March 2024. In the future, the company will look for fortune in the US.
In concrete terms, Meyer Burger’s turnover fell to 135.0 million francs in 2023 (previous year: 147.2 million), the company announced on Thursday. Operationally (EBITDA), the company was again deeply in the red with a loss of 163.6 million francs (previous year: −34.6 million). The end result was a very high loss of 291.9 million (previous year −69.9 million).
Meyer Burger said almost half of the loss was due to one-time effects. At the end of the financial year, inventories had to be written down due to a huge drop in market prices from the second half of the year. Without these value adjustments, the operating result (EBITDA) would have been “only” −111.9 million francs.
Moving to the US
At Meyer Burger, the focus is currently not just on the numbers. On the contrary, the company is once again dealing with the closure of the factory in Freiberg in eastern Germany. It was said that production there effectively stopped in mid-March. The hope for more support from German politicians has apparently not been fulfilled for the time being.
Meyer Burger originally wanted to close the three-year-old factory in Freiberg at the end of February. Due to dumped prices from China, production there was no longer worthwhile and the company wanted to put an end to it due to “serious losses”.
In this context, Meyer Burger also complains that the EU is not sufficiently protecting the solar industry against highly subsidized Chinese competitors. With these unequal tables, ‘fair competition’ is no longer possible and withdrawal is the logical consequence.
About 500 employees will lose their jobs as a result. Meyer Burger wants to continue the production of solar cells in Thalheim (also in East Germany). Research and development must also continue to take place in Switzerland and Germany.
That is why the ailing company is now looking for fortune in the US. The market there is well protected against cheap imports from China and the order books are well filled. That’s why we’re investing heavily in completing solar cell manufacturing in Colorado Springs and solar panel manufacturing in Goodyear, Arizona.
Meyer Burger initiated the investments in the US several years ago. Production at the new factory in Goodyear, Arizona, is scheduled to start in the second quarter of 2024, Meyer Burger continues. Ramping up cell production in Colorado Springs is expected to begin in late 2024, provided the necessary financing – as currently expected – is secured.
As is known, the company wants to secure 200 to 250 million francs in new resources through a capital increase. Its largest customer Desri now plans to participate in the upcoming capital increase together with Sentis, according to Meyer Burger. An investment of up to US$20 million, but a maximum of 10 percent of the issuance volume, is planned through the acquisition of unregistered shares.
Desri and Meyer Burger have been working closely together in the US since 2022 as part of a multi-year purchasing agreement. Meyer Burger now believes that Desri’s planned investment will significantly strengthen Meyer Burger’s market positioning in the US. (rbu/awp/sda)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
