Meyer Burger cancels US solar cell plant, announces restructuring

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Meyer Burger has canceled plans to open a 2 GW solar cell manufacturing facility in the United States. In a statement, the Swiss-German PV manufacturer said construction of the plant at Colorado Springs is no longer financially viable.

The board of directors has also instructed company management to draw up a comprehensive restructuring and cost-cutting program for the business. A planned 0.7 GW expansion of Meyer Burger’s 1.4 GW module production plant in Goodyear, Arizona, has also been put on hold.  

The decision means Meyer Burger’s existing cell production site in Thalheim, Germany, will continue to form the backbone of the company’s solar cell supply, according to the manufacturer – a reversal on previous plans. Meyer Burger said cells produced at Thalheim represent the most economical option in the current market conditions. 

The manufacturer had sought a debt financing package backed by the monetization of tax credits available through the US Inflation Reduction Act (IRA). Regulations in the United States allow an additional 10% bonus investment tax for US solar projects. Announcing the Colorado production facility in July 2023, Meyer Burger said it planned to monetize up to $1.4 billion in tax credits from the start of production in 2024 until the end of 2032.

In the restructuring announcement, it said it will continue to seek debt financing on a reduced scale by monetizing the tax credits available to its US module production facility. It added its financing requirements will be “significantly lower” due to halting the Colorado Springs plant.  

In addition to announcing a “comprehensive” restructuring and cost-cutting program, Meyer Burger has postponed publication of its half-year financial result, previously announced for Sept. 16, 2024, to Sept. 30, 2024. The company said it could potentially postpone to an even later date, subject to regulatory approval.

Personnel changes are also expected at board level. Mark Kerekes has stepped down from the board of directors, with the company stating that its realignment will require a “new composition” of the board of directors.  

“We would like to thank Mark Kerekes for his very constructive cooperation and significant contributions during his membership of the board of directors,” said Franz Richter, chairman of the board of directors of Meyer Burger. 

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