Meyer Burger Technology, a Europe-based solar cell and module manufacturer, has announced a strategic shift in its operations, focusing on its solar module production facility in Goodyear, Arizona, while halting plans for a new solar cell manufacturing plant in Colorado Springs, Colorado.

The decision is part of a broader restructuring effort to achieve sustainable profitability.

The company has deemed the construction of a solar cell production facility in Colorado Springs financially unviable, leading to the project’s discontinuation. This move also halts the planned collaboration with a U.S. technology group.

Meyer Burger is concentrating on ramping up its 1.4 GW nominal module production capacity at the Goodyear, Arizona plant. This facility is already largely installed and operational.

Contrary to previous plans, the existing cell production site in Thalheim, Germany, will continue to supply solar cells due to their cost-effectiveness under current market conditions.

The company has temporarily suspended plans to expand the Goodyear facility’s capacity by an additional 0.7 GW. The decision will be revisited based on the progress of ongoing customer discussions and the restructuring program’s outcomes.

Meyer Burger plans to continue pursuing debt financing by monetizing 45X tax credits, albeit on a reduced scale tailored to its U.S. module production.

This adjustment is expected to lower the company’s financing needs and reduce the financing gap anticipated after a capital increase in April 2024. Consequently, the medium-term EBITDA target and the group’s debt ratio are also projected to be lower than expected.

In response to these strategic changes, the Board of Directors has tasked management with developing a comprehensive restructuring and cost-cutting program to ensure long-term profitability.

Additionally, pending regulatory approval, the publication of the company’s half-year financial results has been postponed from September 16, 2024, to September 30, 2024, or possibly later.

In January, Meyer Burger shut its manufacturing facility in Freiberg, Germany. The closure is a part of the company’s plan to cut its losses in Europe and move the manufacturing base to the U.S.

The company plans to explore the options under the 45X Advanced Solar Manufacturing Tax Credit regulation to advance its expansion plans in the U.S.