Company News

Panasonic to build Malaysian solar cell plant

Panasonic has cancelled a plan to convert a plasma-television panel plant in western Japan into one that makes solar panels. This is an indication of how Japan's solar-panel makers are struggling, as fast-growing Chinese makers create a global inventory glut, while the strong yen makes Japanese exports more expensive.

Panasonic's plant in the northwestern Malaysian state of Kedah, which would employ 1,500 people and start production in December 2012, will strengthen the firm's cost competitiveness, it said.

Panasonic acquired a majority stake in Sanyo in December 2009, taking over one of the world's biggest suppliers of rechargeable lithium-ion batteries and a major player in solar panels, before turning it into a wholly owned unit.

The global market landscape for solar panels has changed dramatically in recent years with Chinese solar-cell makers now among the world's biggest producers, helped by Beijing's support for renewable-energy businesses.