As of: March 28, 2024, 5:52 p.m
By: Bleranda Shabani
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The Swiss solar company Meyer Burger has announced the final closure of its factory in Freiberg, Saxony. Around 400 employees are affected by layoffs.
Freiberg - After government aid for solar companies in trouble was rejected, the chapter for Meyer Burger in Germany is closed. Facing financial difficulties, the company plans to move manufacturing overseas and focus on building new factories in the United States - supported by generous government aid from Washington.
Solar company Meyer Burger is about to go out of business
For a long time, Meyer Burger was considered one of the few remaining manufacturers of solar cells in Europe and a technological pioneer in the industry. The solar company produces its own solar cells and solar modules for solar systems on roofs, balconies and open spaces. After a long struggle with financial difficulties, the company was unable to keep up with Chinese competitors who, thanks to massive subsidies, can offer significantly cheaper products.
Development in the solar industry
Meyer Burger's technologies make a significant contribution to the fact that over half of all solar modules produced worldwide can be traced back to their innovations. Despite its origins as a manufacturer of machines for the watch industry in the 1950s and entry into the solar industry in the 1990s, the company has failed in the face of tough global competition.
Chinese production was able to overtake the German company. Chinese manufacturers are leading the way in adapting Heterojunction/SmartWire technology, which they produce significantly more cost-effectively than their global competitors thanks to generous subsidies from Beijing.
This development forced the Swiss company to adjust its cost structure - but the Chinese alternative is often cheaper for customers. After the expansion of production in Bitterfeld-Wolfen was stopped last year and the relocation of a new building project to the USA was announced, they are now also withdrawing from the Freiberg location.
The managing director of the solar company Meyer Burger, Gunter Erfurt, stands in front of a lettering with the company name. © Simon Kremer/dpa
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Solar industry is struggling: China is winning
The solar industry is suffering from massive distortions, especially from Chinese companies that have benefited from government subsidies for a decade and a half. America took action two years ago to put a stop to this activity, while Europe continues to keep its market open to Chinese solar companies, making it difficult for domestic companies.
There has been silence in the production halls since mid-March - for Meyer Burger, the costly production at the factory in Saxony is no longer affordable. Last year the company again posted heavy losses, with a deficit of 292 million Swiss francs on net sales of 135 million Swiss francs. Over the last four financial years, losses totaled 525 million francs.
Christian Lindner rejects solar subsidies
The company was hoping for government support from Berlin. The discussion about the introduction of a resilience bonus in “Solar Package 1” has long been a central topic for the federal government. The original aim of “Solar Package I” was to help struggling companies. The expansion of photovoltaics should be further promoted through a series of measures. Systems that had a minimum proportion of European components should receive higher compensation in accordance with the Renewable Energy Sources Act (EEG) - a so-called “resilience bonus”.
There was sad certainty a few days ago. Federal Finance Minister Christian Lindner rejected the solar subsidy. He did not want to agree to the required resilience bonus. It was clear that it was the end for Meyer Burger. The lack of financial support from the state forced the company to lay off 400 employees. Only 100 employees received offers for alternative locations and areas of activity.