OSAKA (Nikkei)--Sanyo Electric Co. (6764.TO) plans to double solar panel production capacity at its factory in Shiga Prefecture amid surging demand created by the revival of government subsidies for homeowners, The Nikkei reported in its Friday morning edition.
The firm intends to construct a new building for about Y4.2 billion, including the costs for equipment. Construction will begin in April, with the facility slated to start operations by March 31, 2011.
The facility will be able to assemble 100,000kw of solar panels when it starts running at full capacity around July 2011, lifting the overall annual output capacity of the Shiga plant to 200,000kw. The increased output will allow the firm to supply panels for about 25,000 more homes a year.
Sanyo's worldwide solar panel production capacity will grow about 30% to 450, 000kw. The firm also assembles solar panels at its plant in Osaka.
The company produces cells - a key solar panel component that converts solar energy into electricity - at its Osaka plant and at subsidiary Shimane Sanyo Electric Co. These cells are shipped to the Shiga plant and other assembly facilities abroad where they are combined and attached to frames to produce solar panels.
Panels assembled at home are mostly sold in the domestic market while those assembled at its Hungary factory are shipped to the European market. Its Mexico assembly plant serves North America.
In June, Sanyo announced that it plans to boost annual cell production capacity at Shimane Sanyo to 220,000kw from 130,000kw by April 2010. In addition, the firm is constructing a new cell factory at its Osaka plant. Overall cell output capacity is expected to reach 600,000kw a year by the end of fiscal 2011.
In 2008, roughly two-thirds of Sanyo's solar panels were sold overseas. The third-ranked domestic solar panel manufacturer plans to expand its Shiga plant now that domestic demand is growing sharply in part because the government reinstated its subsidy program in January.
