Meyer Burger Shifts Focus to US Solar Plant Expansion

Mar 15, 2024 01:08 PM ET

• Meyer Burger Technology AG shifts focus to US market, seeking capital increase for expansion. CEO confident in raising funds despite challenges in Europe.

Swiss solar panel maker Meyer Burger Technology AG is looking to establish operations in the US this year after closing one of Europe’s largest solar factories due to competition from cheap Chinese products. The company aims to achieve break-even in its US business after full ramp-up of facilities, but is currently facing losses almost double of analyst expectations.

To fund its US endeavors, Meyer Burger is planning a capital increase through a rights issue, with its largest shareholder Sentis Capital and client D.E. Shaw Renewable Investments participating. The company needs around 250 million Swiss francs to cover losses and fund sites in Arizona and Colorado. CEO Gunter Erfurt expressed confidence in raising external capital, citing existing offtake contracts through 2030 in America.

Despite rumors of a potential deal involving its closed German factory, Meyer Burger CEO confirmed that the plant is not for sale and may be dismantled and rebuilt in the US instead. The company is facing challenges in Europe due to competitive disadvantages and auditing reasons, leading to a stock price drop of 23% and losses of over 91% in the past year. Analysts have differing views on the company’s future prospects, with some cautioning that it may be suitable for specialty situation investors only.

Can Meyer Burger Technology AG successfully establish operations in the US amid financial challenges?

• Meyer Burger Technology AG is looking to establish operations in the US this year after closing one of Europe’s largest solar factories due to competition from cheap Chinese products.
• The company aims to achieve break-even in its US business after full ramp-up of facilities, but is currently facing losses almost double of analyst expectations.
• To fund its US endeavors, Meyer Burger is planning a capital increase through a rights issue, with its largest shareholder Sentis Capital and client D.E. Shaw Renewable Investments participating.
• The company needs around 250 million Swiss francs to cover losses and fund sites in Arizona and Colorado.
• CEO Gunter Erfurt expressed confidence in raising external capital, citing existing offtake contracts through 2030 in America.
• Despite rumors of a potential deal involving its closed German factory, Meyer Burger CEO confirmed that the plant is not for sale and may be dismantled and rebuilt in the US instead.
• The company is facing challenges in Europe due to competitive disadvantages and auditing reasons, leading to a stock price drop of 23% and losses of over 91% in the past year.
• Analysts have differing views on the company’s future prospects, with some cautioning that it may be suitable for specialty situation investors only.