Insolvency | Meyer Burger halts US production: Crisis at Swiss solar manufacturer worsens dramatically

Future uncertain: Meyer Burger closes US plant and lays off employees

Swiss solar manufacturer Meyer Burger Technology AG took drastic action on May 29, 2025, completely ceasing its solar module production in the USA. The company, which has been struggling with financial difficulties for years, was forced to close its still-developing facility in Goodyear, Arizona, and lay off all 282 employees due to a lack of funds. This development marks another serious setback for the long-established company, which was originally founded in 1953 as a manufacturer of watchmaking machinery and later specialized in the photovoltaic industry. The abrupt closure raises serious questions about the future viability of the entire company and could have far-reaching consequences for its German locations in Saxony and Saxony-Anhalt.

Current production shutdown and immediate consequences

Meyer Burger made the decision to immediately shut down its US production on Thursday evening, May 29, 2025, and announced it in an official statement from its Swiss headquarters in Thun. The plant in Goodyear, Arizona, was designed for an annual production capacity of 1.4 gigawatts of heterojunction solar modules and was still in the ramp-up phase. Production was immediately halted, and all 282 remaining employees received their termination notices. The company stated that the future of the site was completely open, suggesting a possible permanent closure.

The production facility in Arizona played a central role in Meyer Burger's international manufacturing strategy. At this plant, solar cells manufactured at the German site in Thalheim, Saxony-Anhalt, were processed into finished solar modules. This division of labor between German cell production and American module manufacturing was intended to help the company benefit from the production incentives of the American Inflation Reduction Act and be positioned closer to the growing US solar market. The abrupt halt to this production not only disrupts this strategic supply chain but also raises questions about the capacity utilization and future of the German production sites.

Financial restructuring and creditor negotiations

Meyer Burger is currently engaged in critical restructuring talks with an ad-hoc group of bondholder representatives. At the heart of the negotiations are two convertible bonds issued by its subsidiary MBT Systems GmbH, maturing in 2027 and 2029, which were guaranteed by Meyer Burger Technology AG. The company's financial situation is so strained that creditors have already granted several deferrals on outstanding interest payments. In mid-May 2025, Meyer Burger received a further deferral of several weeks for interest payments on both bonds from the bondholders, following three previous deferrals.

The precarious financial situation is also reflected in the company's financial figures: For 2024, Meyer Burger reported a preliminary operating result before interest, taxes, depreciation, and amortization (EBITDA) of minus 210.4 million Swiss francs, equivalent to approximately 226 million euros. Revenue amounted to just under 70 million francs (approximately 75 million euros). The company openly admitted that its continued existence was "highly uncertain" and depended on significant new financing and the successful implementation of its business plan. This assessment underscores the existential threat posed by the current crisis.

Strategic setbacks and customer losses

A decisive turning point in the company's recent history was the loss of its largest customer in November 2024. The American solar developer DE Shaw Renewable Investments (DESRI) terminated its framework agreement with Meyer Burger with immediate effect. This five-year contract had provided for the purchase of solar modules with a capacity of up to five gigawatts and was a key pillar for financing and utilizing the Arizona plant. The loss of this major order severely impacted the already struggling company and triggered a sell-off on the stock market, during which the share price temporarily lost two-thirds of its value.

Following the termination of the DESRI contract, Meyer Burger attempted to stabilize the situation in December 2024 with a secured bridge loan, intended to provide the necessary stability for restructuring and potential renegotiations with DESRI. Despite these efforts, the company continued to rely on short-term bridge financing to cover its liquidity needs in the spring of 2025. The fourth extension of this bridge financing underscores the company's ongoing financial instability.

Abandonment of further US expansion plans

In parallel with the closure of its module manufacturing facility in Arizona, Meyer Burger also abandoned plans for further expansion in the US. The planned construction of a two-gigawatt solar cell factory in Colorado was canceled. This decision followed an earlier adjustment in August 2024, when the original expansion plans for the solar cell factory were put on hold. The abandonment of these projects marks the end of the company's ambitious US strategy, which aimed to benefit significantly from American renewable energy incentives.

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Impact on German locations and jobs

The closure of the US plant raises serious questions about the future of Meyer Burger's German locations, particularly in Saxony and Saxony-Anhalt. The company operates a solar cell production facility in Thalheim, Saxony-Anhalt, which originally supplied solar cells for further processing in Arizona. With the loss of this customer, the capacity utilization and economic viability of the German site are now in question. Meyer Burger had already introduced short-time work for approximately 300 employees in Thalheim in April 2025, officially due to a shortage of materials.

The short-time work scheme in Thalheim affects employees who previously worked around the clock in shifts. Legal experts initially assessed this measure as a temporary solution to bridge economic gaps, but warned of a worsening situation if the situation did not improve over several months. With the recent closure of the US site, the situation has deteriorated dramatically, as a major customer for the solar cells produced in Germany has been lost.

Historical development of the German locations

Meyer Burger's German operations stem from strategic acquisitions of insolvent solar companies. The company had already closed what it claimed to be Europe's largest solar module production facility in Freiberg, Saxony, in the spring of 2024. This closure was part of an initial strategy to relocate production largely to the USA, but this plan had to be abandoned due to a lack of financing. Current developments indicate that this revised strategy has also failed, and the company may now be facing a comprehensive restructuring or even insolvency.

Market environment and competitive pressure

Meyer Burger has been struggling for years with structural challenges in the solar industry, particularly with cheap competition from China and overcapacity in the European solar market. Due to economies of scale, lower production costs, and government subsidies, Chinese manufacturers can offer solar modules at prices that are difficult for European and American producers to undercut. This competitive situation led to a sell-off of solar modules from existing stock at dumping prices in the first half of 2024, resulting in further losses.

In addition to pricing problems, write-downs and costs related to the stalled expansion of US production led to further financial burdens. The company's revenue plummeted by almost 50 percent to 69.6 million Swiss francs in the first half of 2024. This dramatic deterioration in business conditions underscores the difficulty of operating profitably in a market increasingly dominated by low-cost Asian suppliers.

Technological positioning and product differentiation

Meyer Burger had attempted to differentiate itself from the competition by specializing in high-efficiency heterojunction solar cells and modules. This technology promised higher efficiencies than conventional solar modules and was intended to enable a premium market position. Despite this technological differentiation, however, the company failed to achieve the necessary market penetration and profitability to justify the high investment and operating costs. The failed US expansion demonstrates that even innovative technology alone is not enough to succeed in a price-driven market.

Future prospects and takeover negotiations

Despite the dire situation, Meyer Burger is currently in talks with potential investors about acquiring a stake in or potentially selling the company. According to management, they are working with selected interested parties to obtain fully financed, binding offers as quickly as possible. These negotiations could represent the company's last chance to avoid insolvency and develop a viable future.

However, the prospects for success of such takeover negotiations are uncertain given the precarious financial situation and structural problems in the solar industry. Potential investors would not only have to assume the existing debt but also make substantial additional investments to make the company competitive again. The fact that Meyer Burger has not yet submitted its 2024 annual report – originally announced for April 15, 2025, and now planned for May 31 – makes a sound assessment of its financial position difficult for potential investors.

Possible insolvency scenarios

Should the restructuring negotiations and takeover talks fail, Meyer Burger faces likely insolvency. Experts had already warned of a “very high risk of insolvency” in September 2024, classifying the company in the red zone according to the Altman Z-Score. Insolvency would not only mean the end of the long-established company but would also have significant repercussions for the remaining jobs in Germany and further weaken the European solar industry.

Conclusions

The cessation of US production and the dismissal of 282 employees mark a critical turning point in Meyer Burger's corporate history. The company, once considered a rising star in the European solar industry, now faces existential challenges that fundamentally jeopardize its future viability. The combination of intense price pressure from Chinese competitors, the loss of key major customers, and recurring financing problems has brought the company to a point where it may have no escape.

The repercussions of this development extend far beyond the company itself, affecting the entire German and European solar industry. The potential collapse of Meyer Burger would further increase Europe's dependence on Asian solar manufacturers and jeopardize strategic autonomy in a crucial future sector. At the same time, the case highlights the difficulty of succeeding in a globalized and highly price-driven market with local production, even with innovative technologies and government subsidies. The coming weeks will reveal whether saving the company is still possible or whether Meyer Burger will go down in history as a cautionary tale about the challenges of Europe's energy transition.

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