Meyer Burger has updated production plans for 2022 and 2023 based on previous operational experience and taking into account the challenging supply chain situation. 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 a further 210-260 MW expected in the second half of the year. By year-end 2022, the company expects to reach EBITDA breakeven on a run-rate basis.
The ramp-up of the first line with an annual nominal capacity of 400 MW per year is technically complete. The ramp-up of the other lines to reach the announced capacity of 1.4 GW is expected to start in September 2022. The company thus expects a production volume of 1.0-1.2 GW in 2023 (previously 1.35 GW).
The reduced volume targets are due to the expectation of a lower throughput of the plant currently in operation compared to the nominal capacity and a delayed ramp-up of the production capacities currently under construction and commissioning. This reflects the ongoing bottlenecks in global supply chains, which are delaying the arrival of components needed to ramp up the additional capacities. In addition, the throughput of the line currently in operation has been and will be impacted by planned shutdowns for the integration of the next line in the same factory, as well as the required frequent product changes due to the strong demand for all three Meyer Burger product variants (Black, White, Glass).
Meyer Burger has so far been able to pass on the increased material costs to customers through sales price increases. Despite significantly higher average sales prices than originally expected, Meyer Burger sees such strong demand for the premium solar modules in Europe and the USA that it has to allocate its limited production volume to customers. Allocations are currently being made for the second quarter of 2023.
The previous sales plan for 2023 provided for a share of up to 30% for the solar power plant segment. The company now assumes that the expected sales volume for 2023 will flow almost entirely into the growing and high-margin segment of house roofs. For the planned capacity expansion beyond the nominal capacity of 1.4 GW currently under construction, Meyer Burger is still pursuing the strategic plan of entering the solar power plant segment as an important additional mainstay.