Meyer Burger, a global manufacturer of equipment and inputs for the solar industry, announced this Wednesday (17) in a conference call with investors that it intends to end production at one of the largest solar module manufacturing facilities in Europe, the Freiberg plant, in Germany.
The closure is expected to take place in early April 2024, affecting approximately 500 employees. However, the final decision is expected to be made by the second half of February.
According to the company, the lack of measures to create conditions of competition with Chinese equipment makes it difficult to continue operations. The solar cell plants in Thalheim, Germany, and the research and development plant in Switzerland will not be affected, as these will continue to support the company's business outside Europe.
Meyer Burger also stated that it intends to focus its efforts on the North American market, which continues to be more attractive for local solar energy manufacturers.
“The US market has proven to be conducive to a thriving domestic solar industry, which benefits from a stable cost base, fixed purchasing agreements and attractive pricing levels. Government support schemes, such as the Inflation Reduction Act (IRA), have further increased the existing market potential,” he stated in a statement.
The company’s CEO Gunter Erfurt explained the strategy. “In the US, we can make the most of our technological leadership position, resulting in substantial interest from partners and supported by favorable industrial policies.”
The company said it has 5,4 GW in purchase agreements in the United States and the potential to generate an EBITDA (earnings before interest, taxes, depreciation and amortization) of around 250 million Swiss francs in 2026.
“We are able to develop a profitable business, providing a positive outlook for our shareholders. Business expansion in the US is currently proceeding as planned, with the start-up of our solar module production facility at Goodyear, scheduled to start in the second quarter of 2024,” said Erfurt.
Regarding the factory in Germany, the company said it is open to discussions with local authorities. In the event of closure, engineering, technology, supply chain management and certain other critical functions will have the option to transfer to other Meyer Burger locations.
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