Meyer Burger Produced 302 MW Modules In H1/2023

• Meyer Burger says its business in Europe suffered in H1/2023 due to oversupply of Chinese modules in the market  
• It now plans to explore further expansion within the US market while also preparing for the German PV manufacturing bid  
• 207 MW module sales in H1/2023 helped increase annual sales by 70.8% to CHF 96.9 million  

• Management has refrained from giving any specific guidance for 2023 even though it expects to produce 800 MW modules operationally

With 85 GW worth of cost-competitive Chinese solar modules flooding European markets in H1/2023 and 'lack of fair market conditions for European manufacturers in Europe', Meyer Burger Technology AG said it was forced to reduce prices for its Europe-made products in Q2, leading to total special effects of close to CHF -13 million ($ -14.7 million). 

"Due to the lack of protection against manufacturers who offer modules significantly below their production costs, there is currently no incentive for suppliers such as Meyer Burger to build further capacity," the management stated.   

Hence, the company plans to focus on further expansion within the US where it has announced 2 GW solar cell and 2 GW module fab and where it is diverting cell production equipment originally allocated for the German fab (see Further Capacity Expansion For Meyer Burger).  

This, it says, makes the company eligible for the Advanced Manufacturing Tax Credit 45X under the Inflation Reduction Act (IRA). It is now exploring further multi-GW offtake agreements in the US and is also selecting another site for further production expansion under the 'industrially attractive and sustainable conditions' in the US.   

Nonetheless, the manufacturer continues to keep an eye on the growing European market. Meyer Burger is entering the bid for its INTEGRA 5 GW solar cell and module production facility in Germany under the government's call for 10 GW PV manufacturing capacity.  

The management shared, "Possible combinations of the INTEGRA project with the High-efficiency Onshore PV module production in Europe (HOPE) project, which has already been submitted via the EU Innovation Fund and approved for funding of €200 million, for the establishment of a 3.5 GW solar cell and module production facility are currently being examined."   

In July 2023, the company said its HOPE project will be constructed in Germany and possibly in Spain (see EU Innovation Fund Swiss Winner's Growth Plans).   

H1/2023 financials & guidance  

Meyer Burger increased its annual sales for the reporting period by 70.8% to CHF 96.9 million ($110 million), but generated an operating loss at an EBITDA level of CHF -43.3 million ($ -49 million). Sale of 207 MW solar modules garnered CHF 93.0 million ($105.6 million) in sales. Net loss widened to CHF -64.8 million ($ -73.6 million), up from CHF -41.0 million in H1/2022.  

Meanwhile, in keeping with the preliminary guidance offered, the company produced a total of 302 MW in H1/2023. In 2022, it rolled out 321 MW in total while guiding for 1.0 GW to 1.2 GW to be manufactured in 2023 (see Meyer Burger Achieves Revised 2022 Module Production Guidance).  

Now, citing additional expenses for the production ramp-up in Colorado, US and 'continued limited visibility' in the price development of solar modules due to oversupply of Chinese modules in the European market, Meyer Burger expects to produce 800 MW of modules in 2023. However, it refrains from giving any specific guidance for the full year as of now.