Meyer Burger has shelved its plans for solar cell production in Colorado, US
The planned 2 GW cell factory has been put on hold due to financial constraints
The annual production capacity of the 2 GW US solar module factory has been reduced to 1.4 GW
A little over a year after announcing plans to establish a 2 GW solar cell production facility in the US, European solar cell and module manufacturer Meyer Burger Technology AG has put the project on hold saying it is no longer financially viable.
“Meyer Burger Technology AG announced today that the planned construction of a solar cell production facility in Colorado Springs, Colorado, USA, is no longer financially viable for the company due to recent developments and that the project will therefore be discontinued. The planned cooperation with a US technology group will not be implemented at present in view of the revised strategy,” stated the management.
The Colorado fab plans were unveiled in July 2023 to exclusively supply cells to the company’s 2 GW Arizona solar module fab (see Further Capacity Expansion For Meyer Burger).
Module production factory in Goodyear, Arizona, US—currently in the ramp-up phase—stays relevant, but with a nominal annual production capacity of 1.4 GW as the management has suspended the addition of 700 MW for the time being. Its addition will be an option that Meyer Burger may decide to take up in the future as part of its upcoming restructuring program.
Its existing solar cell production site in Germany’s Thalheim, Bitterfeld-Wolfen will remain fully operational and continue to form the ‘backbone’ of its cell supply for the US module fab.
Meyer Burger has already suspended its module production plant in Germany’s Freiberg owing to a lack of financial support for local manufacturers, to focus on the lucrative US market instead. The company previously blamed market distortions with bulging Chinese inventories with competitive prices as negatively impacting demand for local European producers (see Meyer Burger Finally Closing Down Freiberg Module Facility).
It added that the debt financing previously sought via monetization of 45X tax credits will be pursued on a reduced scale. The management expects that its financing requirements will be significantly lower and that the financing gap remaining after the capital increase in April 2024 will be reduced.
Meyer Burger will now prepare a comprehensive restructuring and cost-cutting program. One of its board members, Mark Kerekes, has also resigned as part of the restructuring efforts. This will be followed by a new composition of the Board of Directors.
The news follows its recent announcement to postpone its H1 2024 financial results until September 16, 2024, as it works ‘intensively’ to secure additional financing and a strategic technology partner. Now, it has further postponed its financial results publication to September 30, 2024, or even later.
Speaking of the US solar manufacturing market, TaiyangNews has teamed up with EUPD Research and RE+ to discuss the subject of competitive solar PV manufacturing in the country with leading stakeholders in the industry. The 1-day Solar Made in USA Conference will be held in Anaheim, California on September 9, 2024. Registrations for the conference can be done here.