Switzerland-based Meyer Burger Technology has revealed plans to shut down its solar module manufacturing facilities in Germany, citing a challenging market environment in Europe. The company stated that the decision is driven by the unsustainable nature of full-scale European solar manufacturing in the current conditions.
The closure is expected to affect approximately 500 employees at one of Europe’s largest operational solar module production sites in Freiberg, Germany, with the shutdown anticipated to commence as early as the beginning of April 2024.
While Meyer Burger emphasized that a final decision on the closure will be made by the end of February, the company expressed openness to reconsidering its plans if measures aimed at creating a more balanced playing field in Europe, such as a resilience-reward scheme, are implemented.
Despite the challenging European market, Meyer Burger remains committed to its research and development (R&D) efforts in Switzerland and Germany. The company clarified that these R&D sites will continue to play a vital role in developing and producing technology and equipment to support its operations outside of Europe.
In a strategic shift, Meyer Burger intends to leverage its cell production facility in Talheim, Germany, to support module production at its upcoming 2 GW factory in the United States. The company highlighted its optimism about the U.S. market, citing its leading technology position and favorable industry policies as key drivers for its expansion in the country.
Meyer Burger CEO Gunter Erfurt expressed confidence in the company’s U.S. endeavors, stating that the expansion of its U.S. business is progressing as planned. This includes the anticipated launch of solar module production at its Goodyear site in the second quarter of 2024.
The decision to close its German facilities marks a significant shift from Meyer Burger’s previous ambitions in the region. The company had previously set targets to achieve around 3 GW of new annual production capacity in Germany by the end of 2024, including 1.4 GW of module production capacity in Freiberg. Additionally, Meyer Burger had plans to construct a 3.5 GW solar cell and module factory in Spain, although the location remains unspecified.
By consolidating its module and cell manufacturing in the United States, Meyer Burger aims to capitalize on the benefits offered by the Advanced Manufacturing Tax Credit 45X system, a component of the U.S. Inflation Reduction Act (IRA).
As Meyer Burger prepares to navigate these changes, the company remains focused on optimizing its global operations and maintaining its position as a key player in the solar technology industry.
(Source: Bloomberg | PV Tech | PV Magazine)
