GTAT chapter 11 affects Meyer Burger US production
Meyer Burger Technology has announced that its production capacities at the Colorado Springs, CO/USA site, previously expanded expressly for a project with GT Advanced Technologies Inc. (GTAT), are being adjusted in connection with GTAT's motion for protection under Chapter 11 of the United States Bankruptcy Code.
On October 6, 2014, GTAT, a customer of the Meyer Burger Group, submitted a motion in accordance with Chapter 11 of the US Bankruptcy Code at the U.S. Bankruptcy Court in New Hampshire. The associated legal proceedings are still ongoing and will probably extend over several months. Meyer Burger Group is unable to comment the ongoing legal proceedings.
Over the preceding 12 months, the Meyer Burger Group has increased its personnel at its site in Colorado Springs for a specific project with GTAT in the area of slicing sapphire with industrial diamond wire saws and diamond wire materials. From the legal proceedings to date and customer discussions, Meyer Burger assumes that GTAT will be unable to continue the project as planned. The Board of Directors and Management of the Meyer Burger Group have therefore decided to reduce the Colorado Springs capacities built up expressly for this project with immediate effect, leading to a workforce reduction of 105 persons at this site.
After the workforce reduction, Meyer Burger will still employ around 200 persons at its Colorado Springs site, who will continue to safeguard the US business in slicing solutions and diamond wire technology for the solar industry, sapphire industry and other industrial sectors.
