- Meyer Burger, a solar panel manufacturer, aims to maintain its presence in Saxony-Anhalt.
Meyer Burger rescinds closure threat for solar cell production in Saxony-Anhalt. The proposed move to set up an alternative site in the USA is currently impractical and has been put on hold, according to the company. This means production in Bitterfeld-Wolfen will carry on. "That's the silver lining to the cloud," said CEO Gunter Erfurt.
Meyer Burger had already shut down the largest solar module production facility in Freiberg, Saxony, during the springtime. The Swiss corporation attributed the decision to the intense competition from low-cost Chinese imports into Europe at the time. The sector had earlier unsuccessfully sought assistance from the federal government to bolster European manufacturers. The production of solar cells in Bitterfeld-Wolfen was also on the brink of ceasing operations. Recent reports indicated that production would continue there until 2025.
Germany as the most feasible solution
The plan was to downsize the plant as soon as production in the USA kicked off, Erfurt stated. "That's off the table for now." The financial challenges in setting up cell production in the USA stem from escalating material costs required to convert factories, among other reasons.
The plant in Saxony-Anhalt, with its 350 employees, will hence continue to serve as the "backbone" for Meyer Burger's solar cell supply and supply the company's module production in Arizona, US. This is currently the most sensible option, the Swiss conglomerate disclosed. The module production in Arizona has a capacity of 1.4 gigawatts, which can be fully catered to from Bitterfeld-Wolfen.
USA adopts a harder stance against Asia
New regulations in the USA have made it more economical to import solar cells for module production, clarified Erfurt. The logistics costs for cells are also relatively minimal. Furthermore, there are more stringent restrictions and tariffs on imports from Asia in the USA. "The overall price level in the USA is therefore healthier compared to Europe. That's why it's working."
Despite initial plans to shift production to the United States due to economic challenges, Meyer Burger has put this move on hold due to impracticalities. As a result, the solar cell production in the United States of America remains impaired, and the company will continue to rely on its plant in Saxony-Anhalt for cell supply, serving as the backbone for its module production in Arizona.
