Meyer Burger halts solar plant in Colorado, plans restructuring (updated)

Meyer Burger Technology AG

26/08/2024 07:20

(Recasts throughout with details of board changes, background,
quote)
       ZURICH, Aug 26 (Reuters) - Swiss solar panel maker Meyer
Burger  MBTN.S  said on Monday it was suspending plans for a
plant in Colorado as it announced restructuring measures and
suggested profitability would be lower than previously expected.
    "Meyer Burger Technology AG announced today that the planned
construction of a solar cell production facility in Colorado
Springs, Colorado, USA, is no longer financially viable for the
company due to recent developments and that the project will
therefore be discontinued," the firm said in a statement.
    The firm said its board of directors had asked management to
draw up a "comprehensive restructuring and cost-cutting program"
and that board member Mark Kerekes was stepping down.
    Following the Colorado decision, Meyer Burger said it would
be focusing on its module production plant in Goodyear, Arizona,
which is already largely installed.
    The expansion of nominal module production capacity in
Goodyear by an additional 0.7 gigawatts has been suspended for
now, it said. Debt financing previously sought via monetization
of 45X tax credits will be pursued on a reduced scale, it added.
    The board now expects the firm's financing requirements will
be significantly lower and that the financing gap remaining
after its April 2024 capital hike will be reduced. The
medium-term EBITDA target and the firm's debt ratio are also
expected to be significantly lower than previously expected, it
added.
    The company's cell production site in the eastern German
municipality of Thalheim will remain fully operational and -
contrary to previous plans - will continue to form the backbone
of Meyer Burger's solar cell supply, it said.
    Meyer Burger, whose shares have been under pressure amid
financing struggles, said it was postponing publication of its
half-year results from Sept. 16 until Sept. 30 or later.

 (Reporting by Dave Graham; Writing by Miranda Murray; Editing
by Tom Hogue and Michael Perry)
 ((Miranda.Murray@thomsonreuters.com;))