Solar panel manufacturer Meyer Burger has scrapped plans for a production facility in Colorado.
The Swiss company said the plant is “no longer financially viable” due to “recent developments”.
A strategy realignment will see Meyer Burger focus on the module production plant in Goodyear, Arizona.
It is already largely installed and in the ramp-up phase, the company said.
The existing cell production site in Thalheim (Bitterfeld-Wolfen), Germany, will remain fully operational and – contrary to previous plans – will continue to form the backbone of Meyer Burger’s solar cell supply.
Under the current market conditions, these solar cells are the most economical option for supplying the module production in Goodyear.
“With this arrangement, the company expects to be able to service the existing long-term purchase contracts and to fully utilise the production capacity in Goodyear,” it said.
“The expansion of the nominal module production capacity in Goodyear by an additional 0.7 gigawatts has been suspended for the time being and remains an option that the company will decide on in the context of the upcoming restructuring program and depending on the progress of ongoing discussions with customers.”
The debt financing previously sought through the monetization of 45X tax credits will meanwhile continue to be pursued on a reduced scale, tailored to module production in the US, the company stated.
As a result of these changes, the Board of Directors expects the company’s financing requirements will be significantly lower and that the financing gap remaining after the capital increase in April 2024 will be reduced.
The medium-term EBITDA target and the Group’s debt ratio are also expected to be significantly lower than previously expected.
In connection with the strategic changes, the Board of Directors has instructed the management to draw up a comprehensive restructuring and cost-cutting program.
“This should take account of the realignment and thus lead to sustainable profitability,” added a statement.
Meyer Burger is postponing the publication of the half-year results previously announced for 16 September, 2024 to 30 September, 2024 or, with the approval of SIX Exchange Regulation, to a later date.
In addition, Mark Kerekes, member of the Board of Directors, has announced his resignation from the Board.
“We would like to thank Mark Kerekes for his very constructive cooperation and significant contributions during his membership of the Board of Directors,” said Franz Richter, chairman of the Board of Directors.