From Germany to America: The Shutdown and Transition of Meyer Burger Manufacturing

Hello there, solar enthusiasts! It’s time for an update from the global solar sector, with a focus on one of the leading solar companies, Meyer Burger. As a Swiss photovoltaic (solar cell) manufacturer, Meyer Burger’s recent decision, involving relocating its production hub from Europe to the United States, shines light on some key market dynamics.

To start with, Meyer Burger has announced discontinuation of solar module production in Freiberg, Germany from March. This move is influenced by the current market disruptions fuelled by oversupply and plummeting prices of solar modules. The focus will now be on scaling up its production facilities in Colorado and Arizona in the United States, which is noteworthy news for anyone considering solar panels for their home.

The company expects to achieve significant cost savings from April onwards. Importantly, despite this major shift, sales activities in Europe remain unaffected, and Meyer Burger maintains their commitment to honouring full product warranties for up to 30 years. This important information for prospective buyers considering the sustainability and long-term viability of solar array for home use.

This decision by Meyer Burger spotlights the challenges faced by Europe’s solar manufacturers including competition and lack of policy support, which calls for urgent intervention from the European Union.

As for its US ventures, Meyer Burger seeks shareholder approval for a rights issue to raise up to CHF 250 million ($284 million). Funds raised will go toward completion of U.S manufacturing facilities in Colorado and Arizona. This funding strategy is positioned as an attractive proposal to investors who see potential in the flourishing US solar market, making it a key talking point amidst solar companies.

Meyer Burger’s goal is to offset a CHF 450 million funding gap with this rights issue, credit guarantees, or tax credits. The manufacturer sees potential in using these funds to finish construction of its solar module manufacturing site in Goodyear, Arizona and its solar cell production facility in Colorado Springs, Colorado. Both of these plants, once operational, will hold valuable production capacity, making these hotspots for solar production in the US.

This decision by Meyer Burger highlights the challenges faced by solar companies operating in Europe. Amidst tough competition and lack of policy support, the company has been forced to rethink its strategic direction. However, for those living in the United States, this switch of focus from Europe to the US could mean a greater availability of high quality, durable solar panels for your home.

Policymakers and solar companies must take this situation as a cue to work together and foster a supportive environment for the growth and development of the solar sector. For anyone considering a solar array for home use, it’s crucial to keep an eye on these developments to seize the best opportunities and make the most of this soaring sector. Tune in next time for more updates from the sailing world of solar!

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