Sanyo to invest US$161 million on solar cells
By Masaki Kondo TOKYO, Bloomberg / December 20, 2006
source: chinapost.com
http://www.chinapost.com.tw/news/archives/business/20061220/98014.htm
Sanyo Electric Co., the world’s biggest maker of rechargeable batteries, said it will invest 19 billion yen (US$161 million) in solar cell production over the next two years as demand is increasing. Sanyo expects production capacity to double to 350 megawatts in the fiscal year starting April 2008, the Osaka-based company said in a statement Tuesday. Output of panels will probably total 260 megawatts next year, matching a forecast the company provided first in June.
Sanyo is counting on solar panels and rechargeable batteries to help it narrow losses after forecasting a third annual loss last month. President Toshimasa Iue, the grandson of Sanyo’s founder, has eliminated 14,000 jobs and shed non-core businesses such as a liquid-crystal display venture in the past 12 months.
The company will invest about 9 billion yen in new equipment at its Nishikinohama plant in Osaka in the year starting April 2007, to expand production to 210 megawatts from 115 megawatts currently. It will invest about 10 billion yen in its Shimane plant in southwestern Japan the year after, aiming to make 140 megawatts of panels from 50 megawatts.
The company said in November it expects a net loss of 50 billion yen this fiscal year, reversing a May target for a 20 billion yen profit, because it will spend an additional 40 billion yen to cut 2,200 jobs. Its loss narrowed to 3.6 billion yen in the first half ended Sept. 30, from 142.5 billion yen a year earlier.
Sanyo said on June 21 it plans to invest more than 40 billion yen by 2010 in its solar battery business as it expects sales of the devices to more than triple to 180 billion yen from 56 billion yen forecast this year. Revenue from the business almost doubled last year to 47.5 billion yen.