Swiss photo voltaic panel maker Meyer Burger will search shareholder approval for a rights challenge of as a lot as CHF 250 million ($284 million) to finance the completion of its US manufacturing amenities in Colorado and Arizona.
Swiss PV producer Meyer Burger has determined to discontinue photo voltaic module manufacturing in March in Freiberg, Germany, in a bid to cease sustained losses in Europe. The corporate will as an alternative consider increase its manufacturing amenities in america.
“As there has not but been any choice on coverage help measures to remediate present market distortions created by oversupply and dumping costs of photo voltaic modules, the group has determined to start out preparations for the closure of its Freiberg web site,” the corporate mentioned on Friday.
The corporate mentioned it expects vital price financial savings from April. Gross sales actions in Europe will likely be unaffected and prospects will obtain full -product warranties for as much as 30 years, it added.
Europe’s photo voltaic producers have urged the European Union to step in with emergency measures to guard them from insolvency. Earlier this month, the bloc finalized the Web Zero Business Act, below which at the least 40% of photo voltaic gear deployed on the continent needs to be domestically produced. Nevertheless, so far it has didn’t introduce any emergency measures that will assist to safeguard ailing companies.
Meyer Burger mentioned that it’ll search shareholder approval for a rights challenge of as a lot as CHF 250 million to finance the completion of its US manufacturing amenities in Colorado and Arizona.
“The rights challenge is a pretty proposal to our traders as they will make investments into the extremely engaging US enterprise the place we’re positioned to have the potential to develop a worthwhile enterprise,” Meyer Burger CEO Gunter Erfurt mentioned on Friday. “Moreover, a transparent give attention to our US enterprise makes us unbiased of political choices in Europe.”
Ultimately, the corporate’s aim is to shut the funding hole of CHF 450 million with a mix of the rights challenge, an export company credit score assure from the German authorities of as much as $95 million, and both the “45X” superior manufacturing manufacturing tax credit score below the US Inflation Discount Act, within the quantity to $300 million, or a US Division of Power mortgage.
Meyer Burger mentioned it expects to make use of these potential sources of financing to finish its photo voltaic cell manufacturing facility in Colorado Springs, Colorado, and its photo voltaic module manufacturing web site in Goodyear, Arizona. Each amenities are at the moment below building, with a focused manufacturing capability of two GW every.
“As a consequence of a scarcity of European safety in opposition to unfair competitors from China, practically 4 years of laborious work by nice workers in Europe is in danger,” mentioned Sentis, which is Meyer Burger’s largest shareholder with a ten.01% stake.
In response to Meyer Burger’s announcement on Friday, SolarPower Europe Walburga Hemetsberger mentioned that “this solely underlines absolutely the urgency with which policymakers ought to act. Are governments glad to depart our power transition targets totally within the palms of others?”
This content material is protected by copyright and might not be reused. If you wish to cooperate with us and want to reuse a few of our content material, please contact: editors@pv-magazine.com.
