Sanyo to Spend Y19 Billion to Boost Solar Cell Capacity
Date: 20-Dec-06
Country: JAPAN
Solar cells are one of the core businesses of the struggling consumer electronics maker, which also focuses on rechargeable batteries, digital cameras and mobile phones.
Sanyo, which competes with Sharp and Germany's Q-Cells, said it will spend about 9 billion yen in the business year starting next April and 10 billion yen in the following year to boost its annual capacity to 350 megawatts from the current 165 megawatts.
The Osaka-based company aims to boost its solar cell sales by 18 percent to 56 billion yen (US$474.9 million) or more in the year to next March 31. That would be 2.5 percent of its group sales forecast for the year of 2.2 trillion yen.
Global solar cell sales are rising rapidly due to higher oil prices and growing demand for renewable energy sources.
Following the announcement, shares in Sanyo closed down 2.5 percent at 158 yen, underperforming the Tokyo stock market's electrical machinery index IELEC, which fell 1.13 percent.
(US$1=117.92 Yen)
