I'm posting an update on the Meyer Burger solar company, which I've written about several times and see potential in.
Meyer Burger announces a new 2GW solar cell production line in Colorado Springs, USA. These cells will supply its solar panel manufacturing plant in Goodyear, Arizona. Production is scheduled to begin in Q4 2024.
The new production line will employ 350 skilled workers and the City of Colorado Springs has announced financial support of $90 million. In addition, the company anticipates additional upfront payments from module off-take partners and a Department of Energy loan totaling more than $300 million. Meyer Burger will use the Advanced Manufacturing Tax Credit 45x project, which is part of the IRA (U.S. Inflation Reduction Act). Through this project, it will draw down $1.4 billion in funding from the start of production in 2024 through the end of 2032.
Meyer Burger is holding back on 2023 EBITDA guidance due to additional costs related to the announced U.S. solar cell factory.
In addition, the company announces a change in leadership in place of CCO Moritz Borgmann, who is stepping down for personal reasons. COO Daniel Menzel assumes responsibility for expansion and development in the US. CO Gunter Erfurt assumes responsibility for business activities in Europe and the rest of the world.
The company's shares were down 10% yesterday after the news was announced, but are up less than 2% today.
What's your view of the company? Do you see potential in a new player in the solar panel market? I would be happy to hear any opinion on this company.
Here is the link to the official report: https://www.meyerburger.com/en/newsroom/artikel/meyer-burger-announces-solar-cell-production-facility-in-colorado-usa
I don't know this company, but thanks for the tip. Otherwise, I quite like the sector and the focus.
I haven't researched the company that deeply, but the results don't strike me as breathtaking, which is what I look for in a company in the first place.
Somehow I don't understand the reason for not disclosing EBITDA. I don't know the whole story, and yes, it's not a universally accepted accounting metric, but for transparency's sake alone I would miss it. I don't like the numbers at all, but as I wrote, I miss the information.