Glass Industry News

Meyer Burger adjusts expected production volumes for 2022 and 2023

, Meyer Burger

Meyer Burger has updated its production plans for 2022 and 2023 based on the operational experiences so far and considering the challenging supply chain environment. Meyer Burger now expects a production volume of 320–370 MW in 2022 (previously 500 MW). In the first half of 2022, 108 MW of modules were produced, with an additional 210–260 MW expected in the second half. Around year-end 2022, the company expects an EBITDA breakeven result on a run-rate basis.

The ramp-up of the first line of 400 MW nominal annual capacity is technically complete. The ramp-up of the remaining capacity of the announced 1.4 GW is expected to start in September 2022, resulting in an expected production volume of 1.0–1.2 GW in 2023 (previously 1.35 GW).

The reduced volume targets are due to the expectation of lower throughput compared to the nominal capacity of the currently operating line as well as a delayed ramp-up of the production capacities currently under construction and commissioning. This reflects ongoing global supply chain constraints, resulting in the delayed arrival of required components needed for the ramp-up of the additional capacities. In addition, the throughput of the currently operating line has and will be affected by scheduled downtimes for the integration of the next line in the same facility, as well as the required frequent product switches due to strong demand for all three Meyer Burger product variants (Black, White, Glass). This effect will be minimized with additional capacity, as production lines can be dedicated to single products.

Meyer Burger has so far been able to pass on increased material costs to its customers through sales price increases. Despite significantly higher average selling prices than originally expected, Meyer Burger sees such a strong demand for its premium solar modules in Europe and the USA that it needs to allocate its limited production volume to customers. Currently, allocations for the second quarter of 2023 are being made.

The previous sales plan for 2023 envisaged up to 30% sales into the utility-scale segment. Now, the company expects to allocate the expected sales volume for 2023 almost entirely in the growing high-margin residential rooftop segment. For its planned capacity expansion beyond the nominal capacity of 1.4 GW currently being built, Meyer Burger continues to pursue its strategic plans to enter the large-scale utility segment as a key additional pillar.

, © Meyer Burger

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