Meyer Burger’s CEO Gunter Erfurt and CFO Markus Nikles leave the company
Restructuring efforts to lead to job cuts globally by over 19% by 2025-end
Focus remains on returning to profitability under new management structure
Sale of technology and equipment to strategic customers to generate additional revenue on cards
One of the leading solar PV manufacturing names from Europe, Meyer Burger, has announced the immediate departure of its CEO Gunter Erfurt as the company enters a restructuring program to target and return to profitability.
It aims for a projected revenue of close to CHF 350 million to CHF 400 million and an EBITDA in the mid-double-digit million range 2026 onwards. It said this projection is largely based on the existing production capacity and long-term supply agreements with key customers. Meyer Burger’s 2023 financials suffered due to mounting inventories in the face of unlimited supply of cheaper Chinese modules in the market (see Meyer Burger’s 2023 Business Suffered ‘Market Distortions’).
Part of its strategic planning is the decision to generate additional revenue and contribution margins through the sale of its technology and equipment to strategic customers in cell and module production, something it had stopped years ago when it decided to transition from a solar PV production equipment supplier to cell and module maker.
Module sales from existing inventories will continue in the meantime, as it sells other assets to maintain liquidity in the operational business.
The restructuring is estimated to lead to a reduction of its global workforce from close to 1,050 now to around 850 by the end of 2025. Majorly planned for Europe, the reduction in its employee strength will be offset by an increase in the US as it focuses on the solar module fab in Arizona. Meanwhile, Meyer Burger’s shares are on a downward spiral.
Recently, citing financial constraints, the company shelved its 2 GW cell production fab plans in Colorado, US, while also lowering the planned 2 GW module fab capacity in Arizona to 1.4 GW (see Meyer Burger Shelves 2 GW US Solar Cell Manufacturing Factory Plans).
It is at this time that the company’s CEO Erfurt, who was with Meyer Burger for close to 9 years, has left the group on an immediate basis. He will continue to advise the board during the transition period.
Meyer Burger’s Chairman of the Board Franz Richter will immediately take over as the executive chairman and CEO.
In other senior leadership changes, the board has also announced the exit of CFO Markus Nikles by the end of September 2024. His responsibilities will be assumed by the company’s Executive Vice Presidents Ralf Hermkens in the US and Frank Zimmermann in Europe.
The Chief Operating Officer (COO) Daniel Menzel will take over the additional responsibility for sales, while Chief Sustainability Officer (CSO) Katja Tavernaro will focus significantly on the legal and personnel aspects of the restructuring.
In a note on his social media, Erfurt reiterated his stance of Europe missing a strong industrial policy to bring back solar PV manufacturing to the continent.
“Europe's 100% dependence on China in the solar sector, one of the most important energy sources of the future, will one day be regretted, especially as other European core industries of the future are now being attacked with similar methods,” stated Erfurt.