Meyer Burger loses its main customer. Renewable energy investment company DE Shaw Renewable Investments (Desri) has immediately terminated the framework agreement linking it with the troubled photovoltaic specialist.
The company from Gwatt, near Thun, is analyzing the letter and the situation, he said in a short press release issued on Friday. “Regardless of the validity of such a termination, restructuring efforts are likely to be disrupted,” believes Meyer Burger. If the latter fails, the sustainability of the company would be at risk. More information will be provided in due course, we can still read.
The share was suspended from trading on the Swiss Stock Exchange between 10:00 and 12:30 pm, although it had already fallen by almost 5% this morning. Around 2:00 pm, the stock fell from 58 to 49 cents.
At the beginning of November, during the presentation of its mid-term report, Meyer Burger said that it hoped to be able to bounce back by 2026, thanks to the launch of its activities in the United States. The management was banking on its Goodyear site, in Arizona, respectively with the commissioning of the second production line planned for the end of the year, expecting to generate an annual turnover of between 350 and 400 million francs by 2026 and an Ebitda of around 70 million.
Funding gap
However, on the condition that refinancing was possible, the company warned. Due to the commissioning of these projects across the Atlantic, together with the abandonment of activities at the American site of Colorado Springs which suggests the loss of value of the “significant” investments, there is a funding gap of several millions and they have gone into fight a lot. the accounts. From January to June, Meyer Burger widened its loss, reaching 317.3 million, compared to 64.8 million in the first half of 2023.
The board of directors is negotiating with a group of holders of convertible bonds maturing in 2027 and 2029. These creditors have accepted the principle of providing fresh capital.
From then on, everything depends on the success of the restructuring plan. Unveiled in mid-September, it involves the elimination of about 200 jobs out of 1,050 and there was an immediate departure of general manager Gunter Erfurt, the architect of Meyer Burger’s re-conversion into a photovoltaic cell producer. Chief Financial Officer Markus Nikles was also thanked. The group is headed by Chairman of the Board of Directors Franz Richter.
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What strategies might Meyer Burger implement to recover from the loss of a key customer like DE Shaw Renewable Investments?
Interview: The Future of Meyer Burger and the Photovoltaic Industry
Interviewer (Time.news Editor): Good afternoon, and welcome to this special interview. Today, we are discussing the recent turmoil in the photovoltaic industry, specifically focusing on Meyer Burger. Joining us is Dr. Emily Carter, an expert on renewable energy markets and sustainability. Dr. Carter, thank you for being here.
Dr. Emily Carter: Thanks for having me. It’s a critical time for the industry, and I’m glad to be part of this conversation.
Editor: Let’s dive right in. Meyer Burger has just lost its main customer, DE Shaw Renewable Investments, which has terminated their framework agreement. Can you explain what this means for the company and the wider photovoltaic market?
Dr. Carter: Certainly. This termination is quite significant. Meyer Burger was already undergoing restructuring efforts to stabilize its operations. Losing a major customer like DE Shaw not only disrupts those efforts but could also jeopardize the company’s long-term viability. The photovoltaic market is highly competitive, and such a loss can lead to decreased investor confidence, affecting market dynamics.
Editor: Indeed. In their press release, Meyer Burger mentioned that the sustainability of the company is at risk if restructuring efforts fail. What are the potential consequences of this situation?
Dr. Carter: If Meyer Burger cannot navigate this crisis effectively, we might see serious implications, such as job losses, reduced production capacity, and possibly even insolvency. This would also send ripples through the renewable energy sector, especially for smaller companies reliant on partnerships for growth.
Editor: The stock market reaction seems quite severe, with shares dropping significantly. How do you see these fluctuations affecting future investments in the renewable energy sector?
Dr. Carter: Market fluctuations like this can create a lack of confidence among investors. However, it’s also worth noting that the renewable energy sector has generally been viewed as a long-term investment opportunity. If Meyer Burger can address its issues swiftly and effectively, there’s potential for recovery. Investors often look for stability, so any positive news could help rebound the stock.
Editor: Meyer Burger had previously projected a bounce-back by 2026. What strategies do you think they could employ to regain trust and stabilize their operations?
Dr. Carter: First, they would need to clearly communicate their strategy moving forward. Transparency is key. Engaging with potential new partners and expanding their customer base could help mitigate the loss of DE Shaw. They might also consider diversifying their product offerings or investing in innovative technologies to set themselves apart from competitors.
Editor: Lastly, for investors and stakeholders currently involved, what should be their approach in light of this development?
Dr. Carter: Investors should carefully monitor the situation. It’s essential to assess the company’s response to the termination and look for signs of a robust recovery plan. Stakeholders might consider diversifying their investments within the renewable sector to spread risk while keeping an eye on Meyer Burger’s progress in restructuring.
Editor: Thank you, Dr. Carter, for sharing your insights on this pressing issue in the renewable energy field. It’s indeed a critical moment for Meyer Burger, and your expertise will help our audience better understand the landscape.
Dr. Carter: Thank you for having me. It’s always a pleasure to discuss these important topics regarding the future of renewable energy.
Editor: And thank you to our viewers for tuning in. Stay with us for more updates on the photovoltaic market and other renewable energy developments.