Meyer Burger Halts Arizona Factory, Cuts 282 Jobs

• Meyer Burger halts Arizona solar plant, cutting 282 jobs amid funding woes, highlighting challenges in U.S. solar manufacturing revival.

Meyer Burger Technology AG has ceased production at its Goodyear, Arizona factory, resulting in 282 job losses due to a funding shortfall. The 1.4-GW heterojunction plant, opened in May 2022 as a key U.S. hub, was intended to support a domestic supply chain with Inflation Reduction Act credits. However, the facility closed on May 29, with its future uncertain pending new financing or strategic options. The shutdown follows the cancellation of a 2-GW cell factory in Colorado and a 5-GW module offtake deal with D.E. Shaw Renewable Investments, exacerbated by cheaper Asian imports and reduced IRA tax credits.

The closure is seen as a setback for U.S. efforts to rebuild domestic solar capacity, with Goodyear being one of over 100 factories announced post-IRA. Analysts caution that inconsistent policy support may deter further investment despite rising U.S. panel demand. The halt also impacts the Phoenix area by eliminating recently created skilled manufacturing jobs. Meyer Burger is negotiating with bondholders to restructure convertible notes and exploring strategic alternatives, including new equity or asset sales, while focusing production at its German plant and advocating for stronger import safeguards.

Why did Meyer Burger cease production at its Goodyear, Arizona factory?

• Funding shortfall led to the cessation of production.
• The factory was a 1.4-GW heterojunction plant.
  
• Opened in May 2022 as a key U.S. hub.
  
• Intended to support a domestic supply chain with Inflation Reduction Act credits.
  
• Closure resulted in 282 job losses.
  
• Future of the facility is uncertain, pending new financing or strategic options.
  
• Closure follows the cancellation of a 2-GW cell factory in Colorado.
  
• A 5-GW module offtake deal with D.E. Shaw Renewable Investments was also canceled.
  
• Cheaper Asian imports contributed to the decision.
  
• Reduced IRA tax credits impacted financial viability.
  
• Seen as a setback for U.S. efforts to rebuild domestic solar capacity.
• Analysts warn inconsistent policy support may deter further investment.
• The halt impacts the Phoenix area by eliminating skilled manufacturing jobs.
  
• Meyer Burger is negotiating with bondholders to restructure convertible notes.
  
• Exploring strategic alternatives, including new equity or asset sales.
• Focusing production at its German plant.
• Advocating for stronger import safeguards.