Meyer Burger Technology Ltd Reports 1H 2020 Results

2020 is a year of transformation for Meyer Burger. In the first half of 2020, the Board of Directors decided to adjust the business model and prepare the company for the future. Meyer Burger wants to position itself as a technologically leading manufacturer of solar cells and solar modules.

As a result, the production machines for heterojunction/SmartWire technology will in future only be manufactured exclusively for its own use.

In order to finance the realignment, the company has successfully completed a capital increase with gross proceeds of CHF 165 million, following the approval of the shareholders at the Extraordinary General Meeting on July 10, 2020. The sale of the microwave and plasma technology company Muegge GmbH resulted in a cash inflow of approximately CHF 24 million and a book profit of approximately CHF 4 million.

Business in the first half-year 2020 was constrained by the strategic realignment as well as the exceptional situation of the COVID-19 pandemic. In this difficult market environment, Meyer Burger had incoming orders of CHF 32.2 million (H1 2019: CHF 94 million). Adjusted for divestments and currency effects, the orders received fell by 60.1%. Orders on hand as of June 30, 2020 amounted to CHF 76.1 million (31.12.2019: CHF 105.1 million).

Net sales dropped to CHF 51 million compared to the previous year (H1 2019: CHF 122.6 million or CHF 110.2 million after adjusting for divestments). Adjusted for currency effects and divestments, the organic decline in sales recorded in the retained business areas was 52.5%.
     
The net financial result in the first half-year of 2020 amounted to CHF –4.5 million (H1 2019: CHF –3.9 million). Cash flow from operating activities amounted to CHF –5.7 million (H1 2019: CHF –57.6 million).

The start of in-house solar cell and module production is scheduled for the second quarter of 2021. Meyer Burger has already decided in favour of locations in the “Solar Valley” in Bitterfeld-Wolfen (Saxony-Anhalt) and in Freiberg (Saxony). A team of internal and external production specialists has evaluated the conditions at these locations and assessed them as highly advantageous.

In Bitterfeld-Wolfen, Meyer Burger rents buildings of the former solar cell manufacturer Sovello on a long-term and cost-effective basis. Initially, this will cover an area of 27,000 square meters; additional space can be rented if required. Meyer Burger will use its latest production machines to manufacture highly efficient solar cells using the proprietary heterojunction technology.

The high-efficiency cells will be further processed into SmartWire modules in Freiberg. Meyer Burger will manufacture the patent-protected SmartWire modules in a production facility of the former Solarworld company. To date, it is the largest and most modern plant of its kind in Europe. The plant currently has an annual nominal capacity of more than 600 MW, which can be increased to more than 800 MW with new technologies.
 
Two of the most traditional solar locations in Europe are thus being revived. Being able to use existing infrastructures and the high level of expertise in the regions concerned is a conscious strategic decision that will enable Meyer Burger to achieve short ramp-up times and high product quality.

Capacities for the start of production in the first half of 2021 will be 400 MW per year in solar cell production and 400 MW in module production. The Board of Directors expects that the realigned Meyer Burger Group will already be able to achieve an operating profit with this production volume. A further expansion up to 5 GW is planned.