Meyer Burger, a Swiss solar technology company, is currently facing a severe crisis after its contract with its largest client, Desri, was terminated abruptly. This has had a significant impact on the company, which was already struggling financially and facing challenges in the market.
The termination of the contract with Desri has put Meyer Burger in a precarious position, affecting its ongoing financial restructuring efforts. The trading of Meyer Burger shares was temporarily suspended on the Swiss stock exchange and later resumed with a substantial drop in share price.
The company's recent half-year report shows a significant drop in sales and a substantial increase in operating losses. Meyer Burger has been facing challenges from low-cost competition in China and an oversaturated European solar market. Additionally, the company's expansion efforts in the United States have been halted due to a lack of funds.
Immediate funding is now crucial for Meyer Burger's planned relocation of operations to the United States. The new CEO and Chairman, Franz Richter, has publicly stated that the company is facing a significant financing gap and needs to take swift action to secure the required capital.
Meyer Burger's cash reserves are limited, and the company is actively engaged in negotiations with creditors to secure necessary funds. The company is also implementing cost-cutting measures, including a reduction in its workforce. It is looking to generate additional liquidity through the sale of assets and existing stock.
Despite these setbacks, Meyer Burger remains optimistic about its long-term prospects, driven by existing long-term purchase agreements. The solar technology sector as a whole is under pressure from competition and market dynamics, and Meyer Burger's ability to adapt and secure funding will be crucial for its future success.