Meyer Burger ceases US production operations.
German Sites Brace for Possible Impact Following Meyer Burger's US Production Halt
Meyer Burger, a solar energy company with operations in Saxony and Saxony-Anhalt, Germany, has announced the cessation of solar module production in the United States, leading to the termination of 282 employees at its Arizona facility. The company cited financial difficulties as the reason for the shutdown.
The immediate effect of this decision on Meyer Burger's German locations is unclear, with a company spokesperson noting that negotiations with bondholders are still ongoing. However, the disruption of the production chain could have significant implications for the German sites, particularly in Hohenstein-Ernstthal and Bitterfeld-Wolfen.
In Hohenstein-Ernstthal, solar cell production equipment is manufactured, and around 300 employees have been on short-time work since last year. The Arizona facility provided a crucial link in Meyer Burger's international manufacturing strategy, where solar cells produced in Germany were processed into finished modules in the US. With the Arizona plant now closed, this supply chain has been abruptly disrupted, leaving the German-produced cells without their downstream processing facility abroad.
In Bitterfeld-Wolfen, solar cells have been produced, and around 300 employees have been on short-time work since May. It remains uncertain how the German facilities can continue to operate effectively at planned capacities without the US plant, which provided access to American production incentives and market access.
Meyer Burger has been experiencing financial troubles for several years, partly due to intense competition from China. Last autumn, the company announced a plan to reduce around 20% of its workforce, which could potentially include positions in Germany. In December, the company secured bridging finance of almost 40 million US dollars from creditors.
The halt of production in the US underscores the challenges Meyer Burger faces competing with cheaper Asian products, which may also impact operations in Europe, including Saxony and Saxony-Anhalt. The company's long-term viability and the stability and investment outlook for its German plants are at risk due to these difficulties.
Sources: ntv.de, lar/dpa
Keywords: Solar energy, Industry, USA, Photovoltaics, Arizona, Germany, Saxony, Saxony-Anhalt.
- The cessation of solar module production in the United States by Meyer Burger could potentially lead to revisions in the community policy regarding vocational training for its employees in Hohenstein-Ernstthal, as the crucial link in the international manufacturing strategy has been abruptly disrupted.
- In order for Meyer Burger's German facilities to maintain planned capacities and continue operations effectively, alternative financial resources and energy incentives from the industry may be necessary, as the absence of the US plant has created an energy void.
