Midsummer expands with new manufacturing facility in Europe

According to Midsummer’s 2Q report, the pandemic had a minor impact on the solar technology company during the quarter. The company details difficulties to meet both new and established customers in China due to the restrictions put forth as a response to the pandemic. Sven Lindström, CEO of Midsummer, explains in the report that the situation has had its impact –and that it has provided further proof to the company that having production in Europe is the way to go. Lindström states that the Midsummer is in the process of setting up a new factory in Italy for the European market. And apparently the company have made some strides in this venture. The formation of a subsidiary has begun. Suitable construction sites have been visited and negotiations have begun on lease agreements with the property owners. The company expects to complete this part of the project at the end of the current quarter. In a conversation with Evertiq, the CEO says that the plan to place the factory in southern Europe has, among other things to do with the fact that solar radiation – compared with for example Sweden – is significantly higher which also makes the market more lucrative. Adding to this, local production is also promoted through regional support from the EU. The company plan is to set up a manufacturing facility measuring between 2’000 – 2’500 square metres. However, there is a possibility that it could be even bigger. Lindström tells Evertiq that that the company estimates that this venture will require an investment of EUR 50 million. Currently, the company is planning an application to the authorities and hopes to receive a “green light” to start in January. The goal is for the production of the first solar panels to start within a year.