Meyer Burger’s largest solar module customer DESRI has terminated its contract
The company fears this will adversely impact its ongoing restructuring efforts
This may impact its position to maintain its going concern, stated the management
One of Europe’s largest solar PV manufacturers and a vocal advocate of Europe bringing back solar panel production to the region, Meyer Burger Technology AG has sounded alarm regarding its ability to continue as a going concern after its largest customer D.E. Shaw Renewable Investments (DESRI) pulled out of the agreement.
US-based D.E. Shaw Renewable Investments (DESRI) had placed a long-term 3.75 GW solar module supply order with Meyer Burger in August 2022, to be further expanded to 5 GW. Modules were to be manufactured at the company's Goodyear, Arizona factory and delivered between 2024 and 2029 (see 3.75 GW DESRI Order For Meyer Burger In US).
DESRI also intended to invest in the manufacturer's upcoming capital raise. DESRI, however, has now written to Meyer Burger announcing its decision to terminate the master agreement with immediate effect. The latter has now expressed fears that this will mostly likely impact its restructuring efforts (see Gunter Erfurt Leaves Meyer Burger As Company Initiates Restructuring).
In a brief statement to announce the DESRI development, Meyer Burger stated, “The company currently expects that irrespective of the validity of such termination, this is likely to adversely affect its financial restructuring efforts, which are highly advanced. Assuming that such financial restructuring fails, the company may no longer be in a position to maintain its going concern.”
It says the company is currently analyzing the letter and the situation, and it will provide further information in due course.
For Meyer Burger, this continues the series of setbacks it has been facing for some time now. Prompted by the DESRI order, it planned to expand capacity in the US. With the Inflation Reduction Act (IRA), it also planned to add cell production capacity in the US. Later, the management shuttered the German module plant while continuing with cell production plans here to feed its US module factory. Meanwhile, it dropped the US cell factory plans due to a lack of finances.
Its restructuring efforts launched in September 2024 aim to cut down the company’s global workforce to around 850 by 2025-end. Meyer Burger reported a YoY EBITDA loss of CHF 123.5 million in H1 this year (see Meyer Burger’s H1 2024 YoY EBITDA Loss Widens To CHF 123.5 Million).
Meanwhile, German news website Der Spiegel said the company has now delisted its shares on the Swiss Stock Exchange.