Meyer Burger to Build 2GW Solar Cell Factory in CO
- Meyer Burger Technology AG announced the construction of a 2-GW solar cell production facility in Colorado Springs, creating 350 jobs and offering tax credits and discounted rates. The company is receiving prepayments and a loan, and will adjust sales and marketing to cope with the challenging EU solar market. Initial EBITDA figures show a loss of EUR 42 milllion.
Meyer Burger Technology AG has announced plans to construct a 2-GW solar cell production facility in Colorado Springs, Colorado. The facility is expected to begin production in the fourth quarter of 2024 and will create 350 direct jobs. The state of Colorado and the city of Colorado Springs will provide support such as tax credits, direct support and discounted electricity and water rates amounting to nearly 90 million USD. In order to finance the factory, the company will receive prepayments from module off-take partners, as well as a loan from the US Department of Energy in excess of 300 million USD. As a result of the new factory, the company will not make an EBITDA forecast for 2023 due to additional costs and oversupply in the EU solar market. However, Meyer Burger is taking measures to strengthen sales and marketing activities as well as implementing price adjustments to tackle the challenging situation. Preliminary figures show an EBITDA loss of EUR 42 million in the first half of the year, with final figures due to be published on August 17.
What Support Will Colorado and Colorado Springs Provide for Meyer Burger's 2-GW Solar Cell Facility?
Support Provided By Colorado and Colorado Springs:
- Tax credits
- Direct support
- Discounted electricity and water rates
- Prepayments from module off-take partners
- Loan from the US Department of Energy
- Strengthened sales and marketing activities
- Price adjustments
