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Showa Shell plans to reduce the cost of new CIS photovoltaic cell modules in 2017 7
Japan Showa Shell Petroleum Co., Ltd. launched the "Interim Operational Action Plan for 2013–2017," which outlined strategic directions for its various business segments. Notably, the company emphasized its subsidiary Solar Frontier’s solar cell division, with a clear vision of "building a strong foundation in Japan and leveraging its technical expertise and sales capabilities to go global." This statement was made by the company's representative director, Masaaki Shinkai.
At the same time, Showa Shell announced that it is working on developing new CIS-based solar modules—key components for solar cells. Despite the fact that its solar cell business in Japan has not been around for very long, the company’s board representative, Shigeru Fujimori, expressed confidence in the future of the division. He stated that the modules would be suitable for large-scale solar power plants, industrial applications, and residential rooftop installations. He added that the products are competitive in terms of cost, quality, and efficiency, allowing them to stand up against both domestic and international competitors.
Although the solar cell business had previously faced losses, it turned profitable from the second half of 2012, and was expected to start generating consistent revenue in 2013, according to Arai.
To gain a stronger foothold in the Japanese market, Showa Shell aims to cut module production costs through reduced raw material expenses and technological advancements. Specifically, improvements to the existing CIS solar modules will be implemented at the Guofu Factory in Miyazaki Prefecture, with the goal of cutting production costs by about half compared to December 2012 by 2017.
Additionally, if the new module currently under development at the Atsugi City Institute becomes a reality, it could potentially lower costs even further than the target set by a major Chinese manufacturer. If successfully developed by 2017, the new module could reduce production costs by as much as 70% compared to levels in December 2012.
While Showa Shell did not reveal specific details about the new module, it mentioned that flexible substrates are being explored as a key feature, differentiating it from conventional modules. The company hopes that these innovations will help it avoid direct price competition and offer unique value to customers.
In the medium term, Showa Shell plans to use its cost advantages—both from current and upcoming modules—as a strategy to enter overseas markets. Before expanding internationally, the company intends to first establish a strong base in Japan and conduct thorough technical verification. Once this foundation is solid, the construction of overseas factories may also be considered.