Meyer Burger suffers EUR-304m loss in 2023, DESRI to back capital hike

Swiss solar products manufacturer Meyer Burger Technology AG (SWX:MBTN) suffered a CHF-291.9-million (USD 331.6m/EUR 303.6m) loss in 2023, half of which was due to impairments on fixed assets of the solar cell and module production in Germany as well as inventories.

As announced previously, the company has decided to start preparations for the closure of its Freiberg plant in Germany and to focus on growth in the US, because of continued deterioration of business conditions in Europe. Module production at Freiberg was discontinued in mid-March, while solar cell production in Thalheim, Germany, will continue for the time being to support ramp-up of US solar module manufacturing in Goodyear, Arizona.

Inventories at the end of the year had to be written down as a result of a “massive drop of market prices” from the second half of 2023 onwards, Meyer Burger said, leading to an impairment of CHF 51.7 million.

In 2023, Meyer Burger expanded its nameplate capacity to 1.4 GW but produced 650 MW of solar modules, while module inventories rose to about 365 MW. The company saw its annual sales decline to CHF 135 million from CHF 147.2 million in 2022.

In its 2023 report Meyer Burger says that as 2023 progressed, “it became clear that dumping prices from Chinese suppliers in Europe, coupled with a sharp rise in Chinese production overcapacity and a lack of market protection, led to unprecedented distortions in the European solar market, which had a serious impact on Meyer Burger’s earnings.

Meyer Burger is planning a capital increase of CHF 200 million-250 million, with its largest shareholder, Sentis Capital, intending to invest up to CHF 50 million. Meyer Burger said on Thursday that DE Shaw Renewable Investment (DESRI), its largest customer in the US, plans to invest up to USD 20 million by taking up non-subscribed shares.

The manufacturer expects to be able to start up module production in Goodyear by the end of the second quarter of 2024. The cell production in Colorado Springs, Colorado is projected to ramp-up around the end of the year, subject to sufficient financing.

(CHF 1 = USD 1.136/EUR 1.040)

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