The solar cell manufacturer Meyer Burger wanted to build a new factory in Colorado – with generous US subsidies. But suddenly the factory is considered unfinanceable. The share price has plummeted by 50 percent. This is good news for employees in Germany.
As a reward for moving away from Germany, the USA seemed to be showering the solar company Meyer Burger with money. Nevertheless, company boss Gunter Erfurt has now called off the construction of a new factory for solar cells in Colorado Springs. Despite all the US aid, the project is “unaffordable”.
The reasons for the decision remain unclear. When Meyer Burger announced the Construction of the new gigawatt factory for solar cells in the USA announceda generous financing seemed to be secured. 1.4 billion dollars in tax credits from the “Inflation Reduction Act (IRA)plus $90 million from the state of Colorado and the city of Colorado Springs, including in the form of reduced electricity and water rates.
“Further advance payments from module buyers and loans from the Department of Energy totaling 300 million euros are foreseeable,” announced Meyer Burger.
But all this was not enough: the planned expansion of production was “currently not financially viable for the company due to recent developments,” Meyer Burger announced: “The proposed collaboration with a US technology group cannot currently be implemented in view of the adjusted strategy.”
The fact that even the Americans’ financial blessing is not enough for the new start has caused investors to become extremely uncertain. The Swiss company’s share price temporarily fell by more than 50 percent on Monday. Mark Kerekes, member of the Board of Directors, announced his resignation on the same day. Meyer Burger postponed the presentation of its half-yearly financial statements again, this time to September 30, or, if the US Securities and Exchange Commission agrees, even to an even later date.
It is still unclear which specific conditions are said to have worsened in the US investment. A request from WELT remained unanswered at the time of publication.
The difficulties of the German agricultural and energy group BayWa, which was supposed to be one of the “purchasing partners” of the new cell factory, may also play a role.
The original plan was to supply the company’s own solar module plant in Goodyear, Arizona, with solar cells from Colorado. But now the module plant in Arizona is being supplied from the German plant in Saxony-Anhalt.
The existing cell production site in Thalheim (city of Bitterfeld-Wolfen) will “continue to operate at full capacity and – contrary to previous plans – will continue to form the backbone of Meyer Burger’s solar cell supply in the future,” the company explained: “Under the current market conditions, these solar cells are the most economical option for supplying module production in Goodyear.”
The Thalheim site therefore appears to be secure – good news for the approximately 350 employees there. For the time being, at least: The Board of Directors commissioned management “to develop a comprehensive restructuring and cost-cutting program.”
Meyer Burger had previously lobbied for the creation of a new state aid provision in Germany in order to be able to compete against cheap Chinese imports. Solar power from modules made in Germany should be remunerated at a higher rate. However, politicians rejected the introduction of the “resilience bonus” – it would have increased the EEG remuneration at the expense of all consumers.
Subsequently Meyer Burger closed its solar module production in Freiberg, Saxony, in spring.
Daniel Wetzel is a business editor in Berlin. He reports on Energy industry, Energy policy, Climate policy and Tourism industry.