U.S. manufacturing operations of solar firm Meyer Burger face cease; potential impacts on Saxony and Saxony-Anhalt regions.
Swiss Solar Manufacturer Meyer Burger Halts US Operations Amid Financial Struggles
In a significant development, Meyer Burger, a solar panel producer based in Switzerland with operations in Germany, has announced the halting of its solar module production in the United States. The decision, made due to a shortage of financial resources, has resulted in the layoff of 282 employees and leaves the future of the site uncertain.
The impact on the sites in Hohenstein-Ernstthal and Bitterfeld-Wolfen, located in Germany, remains unclear. While negotiations with bondholders are still ongoing, the company has not yet been able to provide any updates regarding potential repercussions for the German workforce.
As part of its efforts to compete with cheaper solar products from China, Meyer Burger had already reduced around 20% of its workforce in the fall of last year. The company operates a research and manufacturing site for solar production in Hohenstein-Ernstthal, where approximately 300 employees have been on short-time work since last year. In Bitterfeld-Wolfen, solar cells are produced, and short-time work was implemented for around 300 employees starting in May.
The company recently set up production in Arizona, using solar cells produced in Germany. Meyer Burger is currently in discussions with bondholders regarding a potential restructuring, focusing on two convertible bonds maturing in 2027 and 2029.
Meyer Burger has faced financial difficulties for several years, with rivalry from Chinese competition being a significant contributing factor. The company's troubles have led to a variety of significant adjustments in the U.S. and Germany, including the closure of its Arizona factory, the termination of a contract with D.E. Shaw Renewable Investments (DESRI), and the initiation of insolvency proceedings for its German subsidiaries. Despite these challenges, the company's operations in Switzerland and the Americas are expected to continue.
Data from DPA and EF
- Amidst the financial struggles, Meyer Burger is exploring ways to leverage technology, such as innovative solar production methods, to regain competitiveness against cheaper products from China.
- The future of Meyer Burger hinges on the success of these technological advancements, as the company aims to reinvent itself and secure a stable financial future in the global solar industry.
