Swiss PV module producer Meyer Burger has decided to close its Freiburg factory in Germany and is moving ahead with financing plans to open new plants in the US in a bid to halt sustained losses in Europe.
The move follows reports of challenging business conditions caused by cheap Chinese imports.
The company stated “as there has not yet been any decision on policy support measures to remediate current market distortions created by oversupply and dumping prices of solar modules, the group has decided to start preparations for the closure of its Freiberg site, which would take effect in April.
“As a first step, the group will halt production at the site in the first half of March, which is expected to result in significant cost savings from April onwards. Sales activities in Europe are unaffected, and customers will continue to receive full-product warranties for up to 30 years as usual.”
The company has called an Extraordinary General Meeting to seek shareholder approval for a rights issue of up to CHF250m to finance the completion of its Colorado and Arizona factories.
“I am pleased that today we are making concrete progress on our approach outlined on January 17,” said chief executive Gunter Erfurt.
“The rights issue is an attractive proposal to our investors as they can invest into the highly attractive US business where we are positioned to have the potential to grow a profitable business.
“Furthermore, a clearer focus on our US business makes us independent of political decisions in Europe.”
The company said its aim is to close the funding gap of CHF450m with a combination of the rights issue, an export agency credit guarantee from Berlin of up to $95m, and either the “45X” advanced manufacturing production tax credit under the US Inflation Reduction Act, in the amount to $300m, or a US Department of Energy loan.
“Due to a lack of European protection against unfair competition from China, nearly four years of hard work by great employees in Europe is at risk,” said the board of Sentis Capital Cell 3 PC, Meyer Burger’s largest shareholder.
“At the same time, Meyer Burger is rapidly approaching the opening of its module factory in Arizona and is constructing a 2GW cell factory in Colorado,” it added.
“The US policy framework has proven several times that there is a strong bipartisan commitment to protect US-based companies against unfair competition.
“We also have great respect for and trust in the people and the management team of Meyer Burger. That is why Sentis Capital Cell 3 PC, as a shareholder, is once more prepared to support Meyer Burger to realize the benefits of a very profitable business case in the United States.”