Solar PV manufacturer Meyer Burger has released its financial results for the year 2023, revealing a significant increase in net loss. The company reported a 318% surge in net loss, reaching CHF 292 million (equivalent to US$330.6 million).
In 2023, net sales for the company experienced a decline, falling from CHF 147.2 million in 2022 to CHF 135 million. However, there was a notable increase in the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose significantly from CHF 34.6 million in 2022 to CHF 163.6 million.
Franz Richter, the chairman of Meyer Burger, and Gunter Erfurt, the CEO of the company, acknowledged the challenging market conditions faced by the European solar industry in 2023. They attributed the company’s financial difficulties to a combination of factors, including the influx of low-priced solar products from Chinese suppliers in Europe, a significant increase in Chinese production capacity, and a lack of adequate market protection measures. These factors resulted in unprecedented distortions in the European solar market, ultimately impacting Meyer Burger’s earnings.
By the conclusion of 2023, Meyer Burger reported a module manufacturing capacity of 1.4GW. However, the company was only able to produce 650MW of modules due to market challenges in Europe that hindered operations at full capacity. Consequently, module inventories rose to 365MW as a result of these limitations.
Meyer Burger expressed optimism for the future and expressed satisfaction with the recent decision on resilience measures in Italy. The company anticipates potential financial benefits from further resilience regulations in Europe, particularly during the implementation phase of the Net Zero Industry Act (NZIA). Meyer Burger is hopeful that these measures will positively impact its inventory and contribute to its financial growth.
Production in the US
In January, Meyer Burger revealed its decision to shut down its module assembly facility in Germany and shift its focus to operations in the United States. The company attributed this move to the absence of adequate measures to establish fair competition in Europe, specifically pointing to the lack of a resilience-reward program as the primary reason for the plant closure.
The company stated that the funds from potential debt financing sources, combined with the capital increase proceeds, will empower it to commence module production at a 2GW facility in Goodyear, located in the state of Arizona, by the conclusion of the second quarter of 2024. Additionally, the 2GW cell production plant in Colorado Springs, Colorado, is projected to increase its operations by the end of 2024.
When discussing the US market, Richter and Erfurt expressed that the potential is significant due to the presence of existing offtake agreements.
They stated, “If cell and module production at the US facilities can be scaled up as intended, the company anticipates achieving an annual EBITDA of approximately CHF250 million from its US operations in the medium term.”
