News

1 June 2009

 

Showa Shell to boost CIS PV panel capacity to 1GW

Tokyo-based oil refiner and solar panel maker Showa Shell Sekiyu KK plans to spend up to ¥160bn ($1.7bn) over the next five years to increase its annual production of copper indium gallium (CIS) thin-film photovoltaic (PV) panels from the existing 80MW to 1GW, according to Bloomberg.

The firm plans to spend ¥500bn overall by the end of 2014, investing equally in refining and solar operations (allocating the remainder for investor returns, including dividends), says president Jun Arai.

After starting commercial production in 2007, Showa Shell aims to grow its share of the global solar panel market from less than 1% now to 10% within the next five years.

According to a five-year business plan released to the Tokyo Stock Exchange, the firm targets pretax profit (excluding inventory valuations) of ¥100bn ($1.05bn) for 2014 - with the solar business earning half that total - up from break-even in 2008.

Showa Shell already has two solar-panel factories in Miyazaki Prefecture, southern Japan, with combined annual production capacity of 80MW. The firm is now in talks to buy a mothballed Hitachi Ltd plasma TV panel plant in Miyazaki, with plans to build a third solar-panel plant there (costing about ¥ 100bn), to start production in 2011.

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Visit: www.showa-shell.co.jp/english

Visit: www.bloomberg.com