Meyer Burger Halts Production in the USA, Impacting Jobs

Swiss solar manufacturer Meyer Burger has announced the cessation of its solar module production in the United States, which has resulted in the termination of 282 employees. The company attributed this decision to insufficient financial resources, which have hindered its expansion plans in the U.S. market. The future of the production site remains uncertain as negotiations with bondholders are still ongoing.

The company operates additional sites in Germany, specifically in Hohenstein-Ernstthal and Bitterfeld-Wolfen, where it produces solar equipment and cells. Currently, about 300 employees in Hohenstein-Ernstthal have been placed on short-time work, while a similar situation affects another 300 workers in Bitterfeld-Wolfen as the company navigates through challenging economic conditions.

Meyer Burger had recently established its production facility in Arizona, utilizing solar cells manufactured in Germany. The company is currently engaged in restructuring discussions with its creditors to address its financial challenges. This includes negotiations related to two convertible bonds that are due in 2027 and 2029.

For several years, Meyer Burger has faced significant difficulties, largely due to aggressive competition from low-cost solar manufacturers in China. Following a previous announcement of a workforce reduction of approximately 20% from its workforce of over 1,000, the company had initially planned to grow its U.S. operations.

In December, Meyer Burger disclosed that its creditors had granted a bridge financing package of nearly $40 million, aimed at sustaining its operations amidst the ongoing financial strain. However, the recent decision to halt production in the U.S. raises further questions about the viability of its operations both domestically and internationally.