Swiss solar panel maker wields jobs axe on China imports

Zurich — Meyer Burger, the Swiss solar panel maker, will cut nearly 20% of its global workforce, underlining the tough conditions in the renewable energy sector that is battling cheaper imports from China.

The company, which last month halted plans to build a factory in Colorado and delayed publishing its financial results, said it would reduce its workforce from about 1,050 to 850 by the end of 2025.

CEO Gunter Erfurt has also left immediately and will be replaced by chair Franz Richter, while CFO Markus Nikles will leave at the end of September, Meyer Burger said, sending the company’s shares down as much as 7.3%.

The shake-up shows the difficulties facing European solar manufacturers as they battle cheaper Chinese imports flooding the market.

China accounts for 80% of solar module production capacity after years of subsidies, driving oversupply that has triggered a collapse in global prices.

Richter said Meyer Burger had to take action to stem losses, which deepened to Sf292m (about R6.07bn) in 2023.

Most of the jobs will go in Europe with Germany — where it employs 700 staff — expected to bear the brunt of the cuts.

The plan, which aims to return Meyer Burger to profitability, sees annual revenue of Sf350m-Sf400m and core earnings in the double-digit million range from 2026 onwards.

“The long-term survival of Meyer Burger is still in question,” said Zuercher Kantonalbank analyst Bernd Laux, adding that the stock “remains uninvestable”.

On Wednesday, the company said it still planned to publish its half-year results on September 30.

Richter said he was confident the firm’s fortunes would improve once Meyer Burger ramped up production.

“The market is still extremely open worldwide and the need is huge,” he said. “We just have to see that we can now have a very competitive and stable position.”

The company is also looking to sell production equipment it no longer needs after the cancellation of the Colorado factory plan and the closure of its plant Freiberg, Germany earlier this year.

Reuters