Meyer Burger lands up-to-5-GW solar module supply contract in United States
- Meyer Burger Technology AG (SWX: MBTN) on Thursday unveiled an agreement with D. E. Shaw Renewable Investments (DESRI) to supply the US renewables programmer and owner with at least 3.75 GW as well as up to 5 GW of solar modules between 2024 and 2029.
Due to this significant contract, the Swiss business, which turned itself from a supplier of production equipment into a maker of solar cells and also modules, will certainly accelerate its capacity expansion to get to 3 GW a year by mid-2024. Specifically, the expansion of the Goodyear factory in the state of Arizona will certainly be quickened to ensure that the center gets to 1 GW of annual capacity for utility modules to offer the DESRI contract and to have an extra 0.5 GW for the United States roof market.
To money the accelerated growth, Meyer Burger is thinking about a capital increase of around CHF 250 million (USD 262m/EUR 258m) in the following months.
Under the binding agreement, signed yesterday, DESRI has an initially right of refusal to enhance the supplied quantity to 5 GW as well as to extend the deal past the five-year term. The US company will certainly make a "considerable annual deposit" to permit Meyer Burger to purchase products for manufacturing.
"Meyer Burger will generate modules crafted in Switzerland and also Germany and produced in the United States, providing DESRI's projects with a high-quality product and also protected, clear supply chains," stated DESRI executive chairman Bryan Martin.
Meyer Burger board chairman Franz Richter stated that the deal reveals the business's high-performance heterojunction/SmartWire technology is also relevant in the solar power plant segment.
The Swiss firm kept in mind that the just passed Rising cost of living Reduction Act in the US provides significant assistance for the production of elements along the solar worth chain in the country.
Meyer Burger announced these growths as it reported results for the first half of 2022, consisting of a rise in its net loss to CHF 41 million from CHF 37.2 million a year earlier which reflects its ongoing improvement. The firm's EBITDA loss tightened to CHF 24.4 million from CHF 30.9 million, while combined revenue enhanced to CHF 56.7 million from CHF 18 million, which, it stated, shows its capability to sell at premium rates and also pass on current boost to customers.
The company created regarding 110 MW of modules in the very first half as well as expects to create one more 210 MW-260 MW in the second half. Meyer Burger remains in a process of broadening its capacity to 1.4 GW.