Meyer Burger Technology AG has fortified its position as a premier manufacturer of high-quality solar modules and cells amidst a challenging market landscape. Despite facing intense price competition in the European solar market, the company has made significant strides in advancing its presence. However, these market dynamics have hindered Meyer Burger from achieving its targeted sales volumes. Consequently, the fiscal year 2023 results, as announced on January 17, 2024, were notably impacted.
The company has undertaken strategic initiatives to pivot its focus towards the United States, where it sees promising opportunities for growth. Notably, Meyer Burger’s largest shareholder, Sentis Capital Cell 3 PC (Sentis Capital), and its major customer, D.E. Shaw Renewable Investment (DESRI), have expressed intentions to participate in the upcoming capital increase.
Despite operating at its full nameplate capacity of 1.4 gigawatts by the end of 2023, Meyer Burger faced challenges in fully utilizing its production capacity due to market distortions in Europe. As a result, solar module production rose to 650 megawatts, with a significant increase in module inventories to approximately 365 megawatts. Sales for fiscal year 2023 amounted to CHF 135.0 million, down from CHF 147.2 million in 2022.
The company had to recognize impairments on fixed assets and inventories due to the adverse market conditions, leading to a total loss of CHF -291.9 million for the reporting period, with nearly half attributed to one-off effects.
To mitigate the European market challenges, Meyer Burger has decided to focus on bolstering its production and growth prospects in the United States. This includes discontinuing module production at its Freiberg site in Germany and shifting its attention to the U.S. market, aiming for significant cost savings.
In a move to strengthen its financial position, Meyer Burger initiated a capital increase, with Sentis Capital and DESRI showing interest in investing. Sentis Capital plans to invest up to CHF 50 million, while DESRI intends to support the capital increase with up to USD 20 million.
Looking ahead, Meyer Burger anticipates generating substantial EBITDA of nearly CHF 250 million annually from its U.S. operations, positioning itself for profitable growth.
The company remains optimistic about its long-term prospects, particularly in the U.S. market, and is committed to exploring strategic partnerships to further enhance its growth trajectory.
Additionally, Meyer Burger welcomes resilience measures in Italy and anticipates financial benefits from potential regulations in Europe, aligning with the implementation of the Net Zero Industry Act.
With adequate financing, Meyer Burger aims to commence module production in Goodyear by the end of the second quarter of 2024, while cell production in Colorado Springs is expected to ramp up by the year’s end, contingent upon sufficient funding.
Finally, there have been changes to the Board of Directors, with Katrin Wehr-Seiter resigning for personal reasons, acknowledged by the Chairman, Franz Richter, who expressed gratitude for her contributions.