Meyer Burger's expansion buoyed by 2 new offtake deals

Swiss solar manufacturer Meyer Burger Technology AG (SWX:MBTN) today unveiled two new long-term offtake agreements in the US as it reported a significant increase in 2022 sales.

The company said it will increase its annual module production capacity in Goodyear, Arizona in the US from 1.6 GW to 2 GW via optimisation measures. Cell production capacity in Germany will need to be boosted accordingly. The additional volume will be sold to “two renowned companies” under offtake agreements that start in 2025 and cover several years. Upfront payments by these customers will largely fund the investments in the new cell lines.

The new agreements add to a large-scale supply contract Meyer Burger signed last year with US developer D. E. Shaw Renewable Investments (DESRI). The manufacturer targets 3 GW of annual capacity by the end of 2024 and is on course to reach 1.4 GW this year.

In addition, Meyer Burger said it has this month applied to the EU Innovation Fund, seeking funding in the three-digit million range for a gigawatt-scale expansion of its solar cell and module capacities in several European countries. A decision is expected in the summer.

In 2022, the company saw its net sales rise to CHF 147.2 million (USD 159.4m/EUR 147.8m) from CHF 39.9 million in 2021 as it generated CHF 125 million from the sale of 250 MW of solar modules.

Earnings before interests, taxes, depreciation and amortisation (EBITDA) were negative CHF 34.6 million, compared to negative CHF 72.5 million in the previous year, while net loss narrowed to CHF 69.9 million from CHF 100.5 million.

As production ramped up the firm added about 400 jobs mainly at its German facilities in Thalheim and Freiberg, with labour expenses increasing to CHF 68 million from CHF 60.4 million.

(CHF 1 = USD 1.083/EUR 1.004)

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