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Solar panel maker Meyer Burger could close German plant

Reuters
Updated ·2-min read

ZURICH (Reuters) - Swiss solar panel maker Meyer Burger warned on Wednesday that it will close its loss-making production plant in Germany as early as April unless the government delivers promised funding to help the industry remain competitive.

"With a deteriorating market environment in Europe, continuing with full-scale European solar manufacturing is not sustainable for the time being," the company said, adding that it has readied "a plan to cut losses in Europe and focus on profitable growth in the United States".

The final decision on Europe's largest operating solar module production plant in Freiberg would have to be made by the second half of February and would affect 500 employees, it said.

Meyer Burger shares slumped as much as 47% on the news and were down 36% at 1028 GMT, on track for their worst day since March 2020.

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German Economy Minister Robert Habeck has held out the prospect of sector support after a planned subsidy fell victim to a court ruling that blew a hole in the country's budget, but the proposal has met with resistance because only Meyer Burger - the sole major company with solar production in Germany - would benefit initially.

Meyer Burger said it expects total 2023 sales of 135 million Swiss francs ($156.5 million) with an operating loss of at least 126 million francs, citing market distortion caused by Chinese production overcapacity and trade restrictions imposed by India and the United States.

In China and the U.S., manufacturers benefit from a comprehensive industrial policy, it said.

"European companies that receive no support and are not heavily subsidised, like the Chinese, can of course do nothing about this," said Meyer Burger CEO Gunter Erfurt.

Solar cell production at another site in Germany will continue to support the ramp-up of solar module production at the company's U.S. plant, it added.

($1 = 0.8628 Swiss francs)

(Reporting by Oliver Hirt and Markus Wacket; Writing by Miranda Murray; Editing by Varun H K and David Goodman)