Solar Panel Maker Meyer Burger's Shares Plummet After it Halts U.S. Plant, Delays Results - Energy News, Top Headlines, Commentaries, Features & Events

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(Reuters) – Shares in Swiss solar panel maker Meyer Burger plunged more than 50% on Monday after the company halted plans for a plant in Colorado, further delayed its financial results and said it was drawing up a restructuring plan.

Meyer Burger had earlier this month already postponed publication of its 2024 half-year results until Sept. 16 as it worked to obtain additional financing and a strategic partner.

On Monday, it said it would delay its results publication until Sept. 30 or later.

Trading in Meyer Burger’s shares fell more than 55% soon after opening, on track for their worst ever day.

The shares, which had already lost more than 90% this year due to the company’s financing problems, were down 46% when trading was suspended. Trading was later resumed.

“Meyer Burger 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 that the project will therefore be discontinued,” the company said in a statement.

The company said its board of directors had asked management to draw up a “comprehensive restructuring and cost-cutting programme” and that board member Mark Kerekes was stepping down.

Meyer Burger has previously said it has suffered from market distortion caused by production overcapacity in China and trade restrictions imposed by India and the United States.

In March, the company said it would close a plant in Freiberg, Germany.

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Following the Colorado decision, the company will focus on its module production plant in Goodyear, Arizona.

However, expansion of nominal module production capacity at the Goodyear plant by an additional 0.7 gigawatts has been suspended for now, it said.

Debt financing previously sought via monetization of 45X tax credits will be pursued on a reduced scale, it added.

Its board now expects the firm’s financing requirements will be significantly lower and that the financing gap remaining after its April 2024 capital hike will be reduced.

The medium-term EBITDA target and the company’s debt ratio are also expected to be significantly lower than previously expected, it said.

The company’s cell production site in the eastern German municipality of Thalheim will remain fully operational and – contrary to previous plans – will continue to form the backbone of Meyer Burger’s solar cell supply, it said.