Meyer Burger’s 2023 Business Suffered ‘Market Distortions’

• Meyer Burger says its financials in 2023 were negatively impacted by unfair market conditions and market distortions 
• Its module production was way below the nameplate capacity while inventory had to be written down 
• Sentis and DESRI plan to offer capital investment to Meyer Burger to fund its US production plans 

European solar cell and module producer Meyer Burger Technology cites European market distortions and unfair market conditions for reporting a total loss of CHF -292 million ($-330 million) in 2023. It says these factors did not allow it to run production at full capacity. 

Hence, despite a nameplate annual production capacity of 1.4 GW, it produced 650 MW modules last year. It also had to recognize impairments on fixed assets of solar cell and module production in Germany and its inventories. The company's module inventories increased significantly to around 365 MW. 

Its total sales during the year amounted to CHF 135 million ($152 million), down over 8% from the CHF 147.2 million it reported last year (see Meyer Burger To Expand US Module Manufacturing Capacity). 

Meyer Burger's inventory over the course of the year increased to CHF 130.8 million, which had to be written down due to the massive drop in market prices during H2 last year. It resulted in a negative EBITDA of CHF -163.6 million ($-185 million). 

The management stressed that it has not entered the price war since the mid-year 2023 price reduction had no impact on its sales volume. 

The heterojunction module maker stopped production at its German module fab at Freiberg since mid-March 2024 to ensure cost savings from April as it trains its lens on the lucrative US market. In the US, it is building a 2 GW module fab in Arizona which will be supported by cells produced by the company's German fab at Thalheim. It is also building a 2 GW cell facility in Colorado Springs, US.

While awaiting resilience measures from the German government, Meyer Burger welcomed the same in Italy. It says Italy will incentivize projects using modules produced in Europe under its resilience measures. The scheme will provide credits of up to 35% of a total investment of up to €2.5 million ($2.7 million) and up to 5% for total investments of €10 million ($11 million) with a ceiling of €50 million ($54 million)/year/beneficiary. Investments need to be made between 2024 and 2025, while also ensuring use of high efficiency cell and module efficiency products.

To support its production plans, the company intends to raise up to CHF 250 million. It has secured capital investment assurance from its largest shareholder Sentis Capital Cell 3 PC for up to CHF 50 million in equity financing. The manufacturer's largest customer D.E. Shaw Renewable Investments (DESRI) of the US has also expressed interest in investing up to $20 million.  

With these investments, Meyer Burger expects to start the Arizona module fab by Q2/2024. It also continues to remain open for potential strategic partnerships with companies that could help with capital investment, industrialization support and increased sales through customer access. Possible development of new geographic areas and/or technology licensing with partners is also on the cards. The Swiss company will retain intellectual property rights. 

Earlier this year, Meyer Burger's announcement to quit module production in Germany was followed by 1KOMMA5° offering to take over the Freiberg site to save jobs. Even installer Enpal said it plans to get into module production in Germany (see German Solar Manufacturing Industry Bracing For A Change?).