Swiss solar panel maker Meyer Burger's future in doubt after key client quits (updated)

Meyer Burger Technology AG

15/11/2024 11:41

(Recasts throughout with comments, analyst quote, paragraphs
5-7)
       ZURICH, Nov 15 (Reuters) - 
    Meyer Burger  MBTN.S  on Friday said its future looked
uncertain after announcing its biggest customer had ended its
agreement with the company as the struggling solar panel maker
attempts to restructure operations to stay in business.
  
        Meyer Burger  MBTN.S  announced that renewable energy
company DESRI  DESR.O  had notified the Swiss firm that it would
terminate its accord with immediate effect.  
  
        Meyer Burger said in a statement that it is analysing
the situation but that irrespective of the validity of such a
termination, the step is likely to adversely affect its
financial restructuring efforts, which are highly advanced. 
  
        "Assuming that such financial restructuring fails, the
company may no longer be in a position to continue as a going
concern," Meyer Burger said, adding that it would provide
further information in due course.
  
        Bernd Laux, an analyst at Zuercher Kantonalbank, said
the development was bad news for the company's prospects.
  
        "This very likely is the end of Meyer Burger," he said,
noting that DESRI was the company's biggest customer by far.
  
        "With the likely introduction of higher tariffs in the
United States, the business model of Meyer Burger making solar
cells in Germany and selling them in the U.S. is no longer
sustainable," added Laux.
  
        He estimated Meyer Burger was expected to getting nearly
90% of its 2025 and 2026 sales from DESRI.
  
        Earlier today the Swiss stock exchange, SIX Swiss
Exchange, suspended the trading of Meyer Burger shares. The
shares are now set to resume trading at 1130 GMT, SIX announced.

 (Reporting by Marleen Kaesebier and John Revill; Editing by
Rachel More)
 ((Marleen.Kaesebier@thomsonreuters.com;))