Meyer Burger scraps plan for 2-GW Colorado solar cell factory

Meyer Burger Technology AG (SWX:MBTN) on Monday said that its plan to build a 2-GW solar cell manufacturing facility in Colorado Springs, Colorado, has been discontinued after the project turned out to be financially unviable.

The Swiss solar products maker, which in February shut down module production at its Freiberg site in Germany due to difficult market conditions in Europe, explained that the decision was taken following recent developments related to the project. In view of that decision, it intends to focus on the ongoing construction of its module factory in Goodyear, Arizona, which is largely installed and in the ramp-up phase. The plant will have a nominal capacity of 1.4 GW, rather than the originally planned 2 GW. The expansion by an additional 0.7 GW has been put on hold but will be considered in the future depending on the progress of ongoing discussions with customers.

In the meantime, Meyer Burger’s cell production facility in Thalheim, Germany, will remain fully operational and continue to be the major solar cells source of supply for the group, including for the Goodyear module factory. Cells from the German site are currently “the most economical option” for the Goodyear production base, Meyer Burger explained.

The Swiss manufacturer will implement a restructuring and cost-cutting programme that it expects to “lead to sustainable profitability.” Its plan to pursue debt financing through the monetisation of 45X tax credits has been scaled down due to the latest decisions as the company anticipates having lower funding needs and a lower medium-term profitability target.

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