U.S. production halt at Meyer Burger.
Meyer Burger Cessation of Production in the USA: Implications for German Sites
In an unexpected development, solar energy provider Meyer Burger has announced it will halt solar module production in the United States due to financial constraints. The decision will result in the dismissal of 282 employees, as production in the US state of Arizona was still in the initial phase of ramp-up.
The future of Meyer Burger's sites in Hohenstein-Ernstthal, Saxony, and Bitterfeld-Wolfen, Saxony-Anhalt, remains uncertain. While negotiations with bondholders are still ongoing, the company spokeswoman declined to comment on potential impacts on the German locations. Both sites play crucial roles in the company's researched-based solar production and machine building, employing approximately 600 people combined.
Production in Bitterfeld-Wolfen has been on short-time work since May, while the Hohenstein-Ernstthal site has been operating on reduced hours since last year. The facility in Arizona had recently started using solar cells manufactured in Germany. The company is currently in discussions with bondholders regarding restructuring, with two convertible bonds due in 2027 and 2029 being affected.
Meyer Burger has faced financial difficulties for several years due partly to stiff competition from cheaper Chinese solar products. Earlier this fall, the company announced plans to reduce its workforce by around 20 percent, including potentially in Germany. However, at the time, expansion of the US site was still expected. In December, the company secured nearly 40 million US dollars in bridging finance.
Although the company's decision to close its US plant may have wider implications for the solar industry, it remains to be seen what impact this will have on Meyer Burger's German operations. Any restructuring efforts may leads to financial strains, operational uncertainty, or job insecurity for employees in Saxony and Saxony-Anhalt. The company's financial instability and the uncertain future of its sites are matters of concern for both employees and investors. [Sources: ntv.de, lar/dpa]
- In light of Meyer Burger's financial predicament, it may be necessary for the company to reevaluate its community policy regarding vocational training, considering the potential for job loss and operational uncertainty at its sites in Hohenstein-Ernstthal and Bitterfeld-Wolfen.
- As Meyer Burger navigates restructuring conversations with industry stakeholders, it is crucial to explore alternative means of financing, such as producers within the solar industry or investors, to ensure the continuation of vocational training programs at its German sites and maintain a solid foundation for future growth and development.
