MB Wafertec responds to difficult and highly volatile market environment

SWITZERLAND: Meyer Burger Technology Ltd announced the reaction by MB Wafertec, Thun/Switzerland to the difficult and highly volatile market conditions in the photovoltaic industry.

The high uncertainties within key markets, which have been exacerbated by current economic difficulties and fiscal policy problems, have caused MB Wafertec (Meyer Burger Ltd, Thun) to adjust their production capacity in recent months. The location in Thun will further adapt its capacity beginning in November 2011 through partial interruptions in the serial production of wire saws in order to meet changes in customer demand. The Group’s targets for net sales and earnings for the current year 2011 remain unchanged from today’s point of view.

Noticeable change in customer behaviour
The looming global economic slowdown coupled with the uncertainty and reluctance of consumers following political decisions to reduce feed-in tariffs in various European countries (Germany, Spain, Italy) have led to dramatic changes in sales trends for solar modules and systems in recent months. These circumstances, as well as the reluctance of the end customer, have forced many solar cell and solar module manufacturers to defer additional projects for the expansion of their production capacities. MB Wafertec is feeling the decline in its customers’ readiness to invest mainly in incoming orders for new production equipment.

The current market difficulties also offer the Meyer Burger Group and the entire industry chances for the future. The cost of manufacturing solar systems across the entire production chain will be further reduced, thus increasing the speed at which the goal of grid parity can be realised. Meyer Burger will continue to very actively and acutely observe the market and, depending on its further development, will take the relevant, appropriate measures for the entire Group.

Planned measures at MB Wafertec
Based on the current demand, the Group has decided to interrupt production at its subsidiary MB Wafertec (Meyer Burger Ltd, Thun) for a maximum of three weeks during November 2011. Employees working in production will bridge this time gap through the reduction of existing overtime hours and by taking the balance of unused holidays. Additional measures such as the use of unpaid leave or the possibility of reduced working hours are being considered for December 2011 and will depend upon the situation and degree of capacity utilisation.

MB Wafertec has been consistently optimising its production and its entire supply chain management in previous years and is therefore highly flexible and can rapidly adjust its own production capacity to meet any fluctuations in demand. As soon as the customers’ preparedness to invest recovers, the company will be able to increase its production and delivery capacities accordingly within the shortest period of time.

Targets for fiscal year 2011 remain unchanged
From today’s point of view, Meyer Burger Technology Ltd confirms its targets for the fiscal year 2011. A large number of machines are currently being transported to customers’ facilities or are already at customers’ locations and, in accordance to the delivery agreements, will be accepted by customers before year-end.

Hence, Meyer Burger confirms its previous expectation to achieve net sales of approximately CHF 1’200 million and an EBITDA margin of between 23-25 percent for the fiscal year 2011 (excluding pro-rata results of Roth & Rau AG).