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Parent Company of Solar Frontier Recognizes Loss of ¥ 10.7 Billion

published: 2017-02-10 13:50

The Japanese PV market continues to witness weaker demand, which affects second/third-tier manufacturers as well as top-tier manufacturers. Due to the market decline, Showa Shell, parent company of Solar Frontier recognized a special loss of ¥ 10.7 billion. 

The Nikkei BP reports that Showa Shell announced on February 6th the recognition of a loss of ¥ 10.7 billion owing to Solar Frontier’s weaker sales performance. The loss recognition took place from October to December 2016. But thanks to the rising crude oil prices and higher stock asset value, Showa Shell will see better overall revenue than the anticipation.
Solar Frontier explains that they had to recognize the fixed asset loss from its Kunitomi Plant in Miyazaki Prefecture ahead of time due to the deterioration of the domestic market and lower module prices. Kunitomi plant is the major production base for Solar Frontier.
How China took the lead to lower modules prices in 2H16 has begun to affect the global PV markets, including the US, Europe, Japan, and Taiwan. Solar Frontier indicated that once the new Fukushima plant is completed, Kunitomi plant will continue to increase capacity and aim to become the plant with world’s top-class cost advantage. On the other hand, Solar Frontier has started to put more effort in the residential market. They launched SmaCIS series, a roof-type solution integrating CIS modules.
(Photo: SmaCIS Installation Example; Photo Credit: Solar Frontier)

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