Meyer Burger prepares to close module production in Germany

02/26/2024 | Print view

Meyer Burger is now preparing the closure of module production in Freiberg. - © Meyer Burger — © Meyer Burger

Meyer Burger is now preparing the closure of module production in Freiberg.

The solar industry is still waiting for Solar Package I. Several manufacturers have repeatedly called for resilience bonuses, i.e. additional remuneration for domestic components in the construction of solar power plants. Module manufacturer Meyer Burger is now drawing the consequences and announcing the closure of its Freiberg plant at the end of April.

The decision of the coalition government on political support to counteract current market distortions caused by oversupply and dumping prices for solar modules has yet to be made. The FDP (Liberal Democrat Party) continues to resist. The solar company Meyer Burger has now written in an ad hoc announcement that it is "beginning preparations for the closure of its Freiberg site, which would come into effect at the end of April".

Sales in Europe will continue as usual

As a first step, Meyer Burger will cease production in the first half of March, which should lead to considerable cost savings from April onwards. Sales activities in Europe will not be affected and will continue. As usual, customers will receive full product warrantees of up to 30 years, the manufacturer promises.

"Due to the lack of European protection against unfair competition from China, the almost four years of hard work of the outstanding employees in Europe is jeopardised," announces the Executive Board of Sentis, which is a shareholder in Meyer Burger. At the same time, Meyer Burger is looking forward to the opening of its module factory in Arizona and is also building a two gigawatt cell factory in Colorado. "The US political system has proven many times that there is a strong bipartisan commitment to protect US-based companies from unfair competition," Sentis explains.

Fresh money for US plants in Colorado and Arizona

Shareholder Sentis will support Meyer Burger to benefit from a very profitable business model in the United States, which is already secured by long-term purchase agreements. Background to the ad hoc announcement: Meyer Burger has convened an extraordinary general meeting to approve a rights issue of between 200 and 250 million Swiss francs.

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The fresh capital is to be used to finance the construction of the US plants in Colorado and Arizona. The implementation of the plan is intended to close the financing gap of 450 million Swiss francs so that the Group can achieve a positive cash flow in the medium term. (nhp/mfo)