Meyer Burger plans CHF-250m share issue to scale production capacity
Meyer Burger solar technology centre. Photo: Meyer Burger
Swiss solar module manufacturer Meyer Burger Technology AG (SWX:MBTN) will seek to raise up to CHF 250 million (USD 252.74m/EUR 258.85m) in a share issue to accelerate the expansion of its annual production capacity to about 3 GW.
The target should be reached by the end of 2024 when the company aims to have 1.4 GW of module production capacity in Freiberg, Germany, and about 1 GW in Goodyear, Arizona. The plant in Germany is expected to serve the European residential and small commercial/industrial market segment.
A production line for solar modules in Freiberg is already working at its full annual capacity of some 400 MW.
The decision for the expansion comes amid the continued strong growth in the solar markets across Europe and the US and follows a large-scale supply contract Meyer Burger signed in August with D. E. Shaw Renewable Investments (DESRI). Under the terms of the deal, the Swiss manufacturer will supply the US renewables developer and owner with at least 3.75 GW and up to 5 GW of solar modules between 2024 and 2029.
The capital increase, which should secure financing for the expansion, is subject to approval by an extraordinary shareholders' meeting scheduled to take place on October 28. Meyer Burger's largest shareholder Sentis Capital PCC (Cell 3), which holds 10.01% of the voting rights, has pledged to support the share issue.
The proceeds will be used to raise the capacity for the production of solar cells at the site in Thalheim, Germany, and the production of modules at Goodyear, Arizona. The US facility is expected to deliver its first products in mid-2024.
The fresh capital will be invested also in the related production and distribution structures, as well as in incremental growth, in the implementation of strategic projects and for other general corporate purposes.
The subscription period is expected to run from November 1, 2022 to November 9, 2022.
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.