Swiss solar panel maker Mayer Berger said on Monday it had suspended plans to build a factory in Colorado after announcing restructuring measures and indicating profitability would be lower than previously expected.
Mayer Berger Technology AG announced today that the planned construction of a solar cell production facility in Colorado Springs, Colorado, USA, is no longer financially viable for the company due to recent developments and the project will therefore be discontinued, according to a company statement.
The company said its board had asked management to prepare a “comprehensive restructuring and cost-cutting program” and that board member Mark Kerekes would step down.
Following the Colorado decision, Meyer Berger said it will focus on its module manufacturing plant in Goodyear, Arizona, much of which is already installed.
The company said it has suspended plans to expand Goodyear’s nominal capacity by an additional 0.7 gigawatts for the time being, adding that debt financing previously sought through the monetization of 45X tax credits will be done at a reduced scale.
The board now expects the company’s financing requirements to be significantly lower and the remaining financing gap to be narrowed after the capital increase in April 2024. It added that the company’s medium-term EBITDA target and debt ratio are also expected to be significantly lower than previously expected.
The company said its cell production site in the eastern German municipality of Thalheim would remain fully operational and – contrary to previous plans – would continue to form the backbone of Meyer Berger’s solar cell supply.
Mayer Burger, whose shares have been under pressure amid financing difficulties, said it has postponed the publication of its half-year results from Sept. 16 to Sept. 30 or later.