ZURICH (Reuters) -Swiss solar panel maker Meyer Burger (SIX:MBTN) said on Monday it was suspending plans for a plant in Colorado as it announced restructuring measures and suggested profitability would be lower than previously expected.
"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 firm said in a statement.
The firm said its board of directors had asked management to draw up a "comprehensive restructuring and cost-cutting program" and that board member Mark Kerekes was stepping down.
Following the Colorado decision, Meyer Burger said it would be focusing on its module production plant in Goodyear, Arizona, which is already largely installed.
The expansion of nominal module production capacity in Goodyear 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.
The 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 firm's debt ratio are also expected to be significantly lower than previously expected, it added.
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.
Meyer Burger, whose shares have been under pressure amid financing struggles, said it was postponing publication of its half-year results from Sept. 16 until Sept. 30 or later.