Troubled Solar Manufacturer Meyer Burger Halts US Operations, Uncertainty Looms
Solar technology producer Meyer Burger temporarily suspends operations in the United States. - Meyer Burger halts American manufacturing operations
Take a seat and let's delve into the latest shake-up in the solar industry. Swiss-based solar manufacturer Meyer Burger, with its operations extending to Saxony and Saxony-Anhalt, has put a halt on solar module production in the USA. The reason? A dire lack of financial resources force-feeding this decision.
The commercial standstill of the USA site, still in its startup phase, has left 282 employees jobless and the site's future shrouded in mystery.
The repercussions on the sites in Hohenstein-Ernthall (Saxony) and Bitterfeld-Wolfen (Saxony-Anhalt) are yet to unfold. When quizzed for clarity, a company spokesperson eluded, "We can't comment just yet, as the negotiations with bondholders are still in progress."
In the Hohenstein-Ernthall facility, you'll find a research and machinery manufacturing unit dedicated to solar production. The approximately 300 employees have been treading water on short-time work since last year. Meanwhile, in Bitterfeld-Wolfen, solar cells are churned out, with around 300 employees already on short-time work since May.
Recently, production in Arizona was kickstarted using solar cells fabricated in Germany. Meyer Burger is engaged in discussions with bondholders regarding a restructuring. Two convertible bonds, due in 2027 and 2029, are up for grabs in this delicate dance.
Meyer Burger has wrestled with financial difficulties for quite some time now, with stiff competition from China playing a significant role. By autumn last year, Meyer Burger declared it intended to slash around 20 percent of its 1000-odd workforce, potentially including Germany. At that time, the USA site was rumored to be in the pipeline for expansion. A December announcement revealed creditors had locked down a bridging finance of nearly 40 million dollars.
- USA
- Saxony
- Saxony-Anhalt
- Thun
- Germany
- Hohenstein-Ernthall
- Bitterfeld-Wolfen
- Switzerland
- Future
[1] Prolonged financial struggles plague solar manufacturer Meyer Burger, prompting drastic job cuts and halting production in the USA.[2] Meyer Burger, currently negotiating with bondholders, faces uncertainty over the long-term fate of its US facility.[3] Debt restructuring looms over Meyer Burger as two convertible bonds (due in 2027 and 2029) become focal points in the negotiations.[4] Meyer Burger's financial troubles extend back to stiff competition from China, resulting in potential layoffs and production standstills.[5] The company promises to release further information as more details emerge regarding the future of its US facility.
- The impending discussions with bondholders may influence the future policy of employment at Meyer Burger's US facility.
- In the wake of the technology-driven solar industry, Meyer Burger's community policy will be tested by its ability to navigate through financial difficulties and resume production in the USA.
