European Manufacturing Requires New Tactics Against Biden’s IRA

TL/DR –

Swiss solar-panel manufacturer, Meyer Burger Technology AG, is shifting its operations to the US after shutting down its factory in Germany, due to competition from cheaper Chinese alternatives. The company raised $220.5 million for the move and cited Europe’s “massive competitive disadvantages”. The US was chosen as the preferred location due to its cheaper electricity, strict trade barriers on Chinese imports, and the potential for $1.4 billion in tax credits for Meyer Burger under the Inflation Reduction Act.

Swiss Solar-Panel Maker Moves Operations to US Amid Europe’s Swelling Competition

Swiss solar-panel manufacturer Meyer Burger Technology AG is expanding its reach to the US following a $220.5 million fundraising. The move comes on the heels of the company’s decision to close its German factory, signaling the harsh impact of cheap Chinese manufacturers on Europe’s solar industry. Meyer Burger sees this transition to the US as the only survival strategy amidst the stiff competition in Europe.

Europe’s costly energy, rapid interest-rate hikes, and heightened competition have previously led industrial firms towards the tantalizing opportunities of the American dream. The US market, with its inexpensive electricity, restrictions on Chinese imports, and the Inflation Reduction Act’s (IRA) attractive incentives, offers a more conducive business environment. A significant highlight is the prominent clampdown on solar panels produced with forced labor, which has exacerbated the surplus in Europe. Meyer Burger stands to gain up to $1.4 billion in tax credits, potentially multiplying its sales sevenfold by 2026, according to Bloomberg Intelligence analyst Alessio Mastrandrea.

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