March 4, 2024

Taylor Daily Press

Complete News World

Solar Magazine – Mayer Burger turns focus to America due to stiff competition in Europe

Solar Magazine – Mayer Burger turns focus to America due to stiff competition in Europe

In a presentation of half-yearly figures, the manufacturer reported that it was able to increase its production to a peak of 300 MW in the first half of 2023. Despite a 71 percent increase in turnover, there was an operating loss.

A difficult situation
The company attributed the loss to difficult market conditions in the second quarter, depreciation, increased production in Germany and continued expansion in the US.

With an equity ratio of 45.9 percent, Mayor Burger says it is well capitalized and well-funded for further expansion activities. The US presence is expanding significantly with its own factory for solar cells and solar panels, which should give the company a gross profit margin of over 25 percent. The manufacturer bases this profit margin on purchase agreements already signed in the US with a peak of 5 gigawatts until 2029. Scale price risk is borne by the customer, selling prices are fixed for the duration of the contract. Cost structure feasibility already proven in current production in Germany.

Disruption of competition
So Meyer Burger plans to focus on expansion in the US for the time being, and further expansion in Europe will soon follow, provided local market conditions are ‘fair and stable’.

Like all European manufacturers, Meyer Burger says the first half of the calendar year was impacted by the supply policy of Chinese suppliers. “Chinese suppliers flooded the European market with a total of 85 gigawatts of solar panels in the first half of the year, which were offered at prices well below production costs,” said Mayor Burger. In the first quarter, the Swiss manufacturer was able to keep sales prices almost constant at the previous year’s level, but in the second quarter, due to a general decline in solar panel prices, the company was forced to cut prices. In addition, it is necessary to write off the reserves of solar panels.

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Lack of security
According to Meyer Burger, there is currently no incentive for suppliers to build more capacity because there is no protection against manufacturers supplying solar panels below their cost of production. The European market, according to the company, needs to quickly implement the industrial policies already announced by the EU to correct the current market failure and the resulting preferential treatment of Chinese suppliers and make it fair competition.

Mayor Bürger is preparing for this by participating in the German government’s ‘PV Industry’ call for gigawatt-scale projects. Potential additions to the INTEGRA project for the construction of a 3.5 GW peak solar cell and solar panel manufacturing facility – already submitted by the EU Innovation Fund and approved for €200 million in funding.

800 MW peak
However, Meyer Burger says he wants to expand capacity in the U.S. under industrially attractive and stable conditions until the European market failure is resolved.

Operationally, 800 MW of solar panels could be produced in fiscal 2023, but the company says it will adjust this amount depending on market conditions in Europe.

See Meyer Burger solar panels for sale in the Benelux here on the Solar Magazine Product Finder.