In releasing full-year 2011 results, Showa Shell highlighted the successful roll-out of subsidiary, Solar Frontier’s CIS thin-film modules in key markets such as Germany, US, Asia, Middle-East and Japan. The company noted a string of commercial and utility-scale project wins having started production at its 900MW plant in February 2011. However, price decline of 40% were reported for the year with further price declines expected in 2012, due to oversupply, though current price declines were said to have slowed.
Both module production and sales were said to have increased dramatically since February 2011. However, profit deteriorated due to new factory start-up costs incurred in the first half of the year and and falling module prices throughout the year.
Showa Shell expects increased demand in 2012, especially in Japan due to the “purchase-all program of renewable energy,” being implemented. As a result the company said it would be increasing its sales network in Japan.
Showa Shell reported that its Energy Solution business segment, which includes Solar Frontier had sales of 65.7 billion yen, an increase of 128.0% versus the prior year period, but had an operating loss of 28.8 billion yen (a decrease of 17.3 billion yen versus 2010.
Solar Frontier was said to be continuing to expand sales into new markets having recently entered markets of France and India.