Swiss solar module manufacturer Meyer Burger is making progress in its goal to relocate production from Germany to the USA, with the manufacturing of solar modules beginning at the Goodyear site in Arizona. Despite this achievement, financing for the move is still pending. The company recently succeeded in starting production at the Arizona factory just before the deadline, following acceptance of the facility. Meyer Burger also announced a merger of shares to make them more attractive to investors, as the company has been struggling financially.
Investors have been closely monitoring Meyer Burger’s share value, which saw a 30 percent price jump after the announcement of a new customer in the USA committing to buying modules with an output of 600 megawatts per year. This marks the company’s fourth major customer in the USA, bringing the total foreseeable orders to 1.73 gigawatts per year. However, the deal is contingent on Meyer Burger starting production of solar cells in the USA before proceeding.
Meyer Burger’s focus is to take advantage of government subsidies in the USA, where President Joe Biden has launched programs supporting the purchase of American-made solar modules. The company is still in the process of setting up cell production in Colorado, facing a financing gap of approximately 450 million Swiss francs. Although capital measures have been initiated, further financing is necessary to ensure long-term stability.
The Zürcher Kantonalbank (ZKB) is optimistic that Meyer Burger will secure external financing as planned, ensuring the company’s future for at least the next 18 months. However, challenges lie ahead in achieving positive free cash flow and optimizing production capacity. Meyer Burger aims to reach a production capacity of 2 gigawatts for solar cells and modules in the USA, emphasizing technological advantages and higher power output. Critics raise concerns about competing on a global scale without adequate economies of scale.