Sanyo to boost solar panel output

Japan's Sanyo Electric Co. is to boost its solar panel production capacity by 30 per cent within the next two years to meet surging demand fuelled by government subsidies.

Sanyo will invest about 4.2 billion yen (€30.65 million) in a domestic plant in Shiga prefecture to double the facility's annual production capacity to 200,000 kilowatts, company spokesman Kumiko Makino said.

In total, Sanyo's solar panel production capacity will rise to 450,000 kilowatts, she said.

"The move is aimed at meeting rising domestic demand thanks to the government subsidies for homeowners," she said.

Sanyo - which is being bought by its bigger rival Panasonic Corporation - is focusing on environmental technologies including solar energy and rechargeable batteries in an effort to return to the black.

Earlier this month, Sanyo announced losses of 18.4 billion yen in the three months to June due to a slump in the electronic component business.