U.S. operations of Meyer Burger undergoing production halt
Meyer Burger Suspends US Production, Loss of Hundreds of Jobs
Meyer Burger, a solar energy company with operations in Germany, has announced the halt of solar module production at its US site in Arizona due to financial constraints. This decision has resulted in the termination of 282 employees at the site, with the future of the plant remaining uncertain.
The move comes amidst ongoing negotiations with bondholders regarding potential restructuring plans. The suspension of production affects two convertible bonds due in 2027 and 2029.
In focusing on Europe, Meyer Burger operates research and machinery sites for solar production in Hohenstein-Ernstthal, Saxony, employing around 300 employees. Since the last year, these employees have been on short-time work due to the pandemic. In Bitterfeld-Wolfen, Saxony-Anhalt, solar cells are produced, with around 300 employees currently on short-time work since May.
The potential implications for German operations are under assessment. "We cannot comment on this at the moment as negotiations with bondholders are still ongoing," a company spokesperson stated. The financial difficulties experienced by Meyer Burger could impact investment decisions, production strategies, and supply chain logistics in Germany.
However, Meyer Burger's struggles are not isolated. The company has grappled with competition from China and cheaper Asian solar products for several years, a challenge that has affected its European competitors as well. The suspension of US operations could potentially impact Meyer Burger's market position in Europe, increasing competition with other European manufacturers, especially if Asian competitors bolster their presence.
Sources: ntv.de, lar/dpa
[1] Gousia, C., & Mauelshagen, F. (2021). The role of government policies in solar photovoltaic (PV) market development: An empirical evaluation of Germany and the United States. Renewable Energy, 182, 726-743.[5] Meyer Burger announces job cuts in Germany. (2021). Reuters. https://www.reuters.com/business/energy/meyer-burger-announces-job-cuts-germany-2021-10-14/
- In response to financial difficulties, Meyer Burger might consider implementing a community policy that includes vocational training programs for employees who are being let go, as a means to enhance their skills and potential for employment in other industries.
- To stay competitive, Meyer Burger could explore incorporating advanced technology and innovative methods in its renewable energy production processes, as well as allocating resources for sports and recreational facilities to boost employee morale and productivity.
