Panasonic vows to diversify into renewable energy category

[2ndRick]

Panasonic has reported that they are diversifying their business model to include renewable energy products including photovoltaic solar panels and lithium ion batteries.

Panasonic reported that their television unit has lost money for three straight years. In the article, it mentions Japanese electronics manufacturers' troubles with power supply components among other factors such as shifts in the value of the Yen.

(this is the first time I have heard any official mention of this power supply issue)

Panasonic Corp. will invest more on renewable energy operations than on its mainstay TV operation in the current fiscal year, accelerating a shift away from home electric appliances.

Fumio Ohtsubo, president of Panasonic, said in an interview with The Asahi Shimbun on June 10 that energy-related investment will exceed that for its TV business operation in the current fiscal year and after.

"The nuclear accident (at the Fukushima No. 1 nuclear power plant) is a fresh reminder of the importance of renewable energy sources," Ohtsubo said. "We are seeing a big business chance."

He said Panasonic will build a factory to produce lithium-ion batteries in China, and a factory to roll out solar panel cells in Amagasaki, Hyogo Prefecture, both in fiscal 2012.

The company expects to bolster a project under way in Fujisawa, Kanagawa Prefecture, that is building a community with energy generated by solar power and stored in rechargeable batteries.

"We want to establish such a project as a prospective export to spur the Japanese economy," Ohtsubo said.

As for the money-losing TV operation, he said the company will be able to stem the losses in fiscal 2012 by curtailing investment in the sector even if the yen remains at the same level against the dollar.

Panasonic's TV operation logged losses for a third straight year in fiscal 2010.

Regarding the sales outlook for the quarter from April to June after the Great East Japan Earthquake, he said that a drop in sales will likely shrink to half or one-third of the company's initial estimate. The company will continue to see poor business performance resulting from disrupted parts supplies and falling sales in coming months, he said, as there are few factors to improve it significantly.

He expressed concern about the plight of Japanese manufacturers amid unreliable power supplies, a stronger yen and a higher corporate tax rate.

"We want the government to make efforts to create a level playing field in which we can compete with our foreign rivals," he said. "Otherwise, businesses may move their operations overseas."

(This article was written by Kazuki Kimura and Aki Sato.)

[bradodegard]

Panasonic has reported that they are diversifying their business model to include renewable energy products including photovoltaic solar panels and lithium ion batteries.

Panasonic reported that their television unit has lost money for three straight years. In the article, it mentions Japanese electronics manufacturers' troubles with power supply components among other factors such as shifts in the value of the Yen.

(this is the first time I have heard any official mention of this power supply issue)

I think they may be referring to domestic electric supply to their plants, not power supplies within the products.

[2ndRick]

I think they may be referring to domestic electric supply to their plants, not power supplies within the products.

Ah, that makes sense!