Swiss solar panel manufacturer Meyer Burger has announced the cancellation of its planned solar cell production facility in Colorado Springs, Colorado, citing financial unviability due to recent developments. This decision comes as the company faces financial challenges, leading to the delay of its 2024 half-year financial results and the initiation of a restructuring plan.
Meyer Burger had initially postponed the publication of its half-year results earlier this month, setting a new date of September 16. However, the company has now pushed the release further to September 30 or later, as it continues to secure additional financing and seek a strategic partner, Reuters news report said.
“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 the project will therefore be discontinued,” Meyer Burger said.
The company’s board of directors has directed management to develop a comprehensive restructuring and cost-cutting programme in response to the ongoing financial strain. Additionally, board member Mark Kerekes has resigned from his position.
Meyer Burger has been grappling with market challenges, including production overcapacity in China and trade restrictions imposed by India and the United States, which have distorted the market. In March, the company announced the closure of its plant in Freiberg, Germany.
Following the decision to halt the Colorado project, Meyer Burger will shift its focus to its module production facility in Goodyear, Arizona. However, the planned expansion of the Goodyear plant’s nominal module production capacity by an additional 0.7 gigawatts has been temporarily suspended.
The company also indicated that debt financing through the monetization of 45X tax credits would continue on a reduced scale. As a result, Meyer Burger’s board expects the firm’s financing requirements to be significantly lower than previously anticipated, reducing the financing gap left after its capital hike in April 2024.
Meyer Burger’s medium-term EBITDA target and debt ratio are also expected to be revised downwards in light of these developments. Despite these challenges, the company’s cell production site in Thalheim, Germany, will remain fully operational and will continue to serve as the core supplier of solar cells for the company, contrary to prior plans for downsizing.