Swedish thin‑film solar manufacturer Midsummer has suspended its plans to build a copper indium gallium selenide (CIGS) solar cell manufacturing facility in Flen, southeastern Sweden. The factory proposal was first unveiled back in 2023.

The project faced financing setbacks after Midsummer failed to secure an anticipated investment grant from the Swedish Energy Agency’s Industriklivet programme. The company will give up awarded time‑limited EU support earmarked for the Flen site.

“While we would welcome building a new factory in Sweden should commercial and financial conditions improve, this will not proceed under the specific Flen project with its allocated EU support,” said Eric Jaremalm, CEO of Midsummer.

“Even with the EU contribution, self‑funding such a large‑scale facility in Flen would require several hundred million kronor. Taking on heavy debt or requesting substantial capital from shareholders is not a responsible move, given we have identified alternative expansion financing avenues,” Jaremalm explained.

Midsummer noted new, far less capital‑intensive factory‑building opportunities have emerged outside Sweden. The firm is pivoting to a long‑term asset‑light operational model focused on partnerships with major industrial players. Under this strategy, Midsummer will supply manufacturing machinery and raw materials to enable local solar‑cell production across global continents, instead of owning and operating factories itself.

As a concrete example, Midsummer has secured SEK 380 million ($39.6 million) worth of machinery orders for a solar cell factory project in Colombia, where it will deliver equipment and take operational responsibility.