|
 After
the Chuetsu earthquake severely damaged Sanyo's
semiconductor plant in 2004, the company
recorded a huge financial loss for that year.
Even in the fiscal year 2005, Sanyo's financial
results saw a $2 billion (Dh7.34bn) net loss.
Today, the company is back on its feet thanks to
its new business strategy, which largely banks
on green technologies. As of March 31, 2008, the
company has recorded an operating profit of
$761m, driven mainly by the increased sale of
digital cameras, rechargeable batteries and
electronic devices. The world's number one
producer of rechargeable batteries aims to
increase its operating profit to $1bn by 2010.
To attain that, the company will be investing
$2bn over the next two years in its clean energy
division. The GCC region – which is currently
one of Sanyo's smallest markets – is not
expected to become a major player for hybrid
vehicles or solar panels in the near term, as
the government subsidises energy and petrol
here. The company, nevertheless, is positive
that the momentum in clean technologies in this
region would continue to increase, said Takashi
Hirao, Chairman of Sanyo Gulf and the Chief
Regional Officer of Sanyo Electric, Middle East,
Africa and India, in an exclusive interview.
Sanyo has launched a new corporate vision in
2005 as an environmental company, ploughing
investment into strong products such as
rechargeable batteries, solar photovoltaics,
air-conditioning and hybrid car batteries. How
is your energy segment now? Are you planning any
major capital injection?
The energy segment is very stable and
profitable. In this area, we plan to invest $2bn
within 2008 to 2010. In the rechargeable battery
business, we will increase production capacity
of lithium-ion batteries to meet the high demand
and invest about $1.3bn on facilities in the
said timeframe. We will also establish strategic
partnerships in the hybrid electric vehicle
business and establish new production bases to
further enhance production. In the solar
business, Sanyo will promote overseas sales
expansion by increasing the production capacity
of HIT (Heterojunction with Intrinsic Thin
layer) solar cells. We will expand scope of
overseas sales to more than $1bn, focusing
primarily on Europe and North America for the
fiscal year 2010.
Clean energy has indeed become one of the
hottest businesses today. The global carbon
emissions trading market has more than doubled
to $30bn last year. What is your ultimate goal
as far as carbon reduction is concerned?
By year 2020, we are aiming at reducing 20
million tonnes of CO2 annually through our HIT
solar panels, hybrid electric vehicles and
rechargeable batteries portfolios.
How do you plan to apply such a strategy here in
this region, which abounds in cheap subsidised
electricity and petrol? What are the incentives
in using solar panels and hybrid cars in this
part of the world?
What we will focus on in this region is to
increase the consumer electronics side. We will
also enhance our presence here in the consumer
air-conditioning business. The solar and hybrid
are still new concepts here but the RTA has
already launched some projects in this regard.
We are also receiving a lot of business
enquiries from the UAE Government, like Abu
Dhabi's Masdar. Buildings here also need to
comply with LEED Building Code Standards. It is
surprising how the UAE Government is conscious
about energy conservation. This is in line with
Sanyo's vision and direction. The greatest
demand at the moment is from the US, Europe and
Japan. But with oil prices skyrocketing, the
demand will eventually get here.
Some energy analysts say solar energy is the way
to go in the Gulf where there is plenty of
sunlight. Do you expect your solar panels would
be able to secure substantial revenues in the
region?
Yes. However, currently we are short of silicon,
a major component used in manufacturing solar
panels. But we're not the only one experiencing
this problem. Moreover, most panel manufacturers
are developing thin film layer panels, which
consumes less silicon, depending on the market
and the demand. In the Middle East, for
instance, thin film panels should be the way
forward.
Industry estimates show that by using
gas-powered turbines, the cost of generating one
kilowatt hour (KWh) of electricity in Dubai
stands at Dh14. By using solar panels, how much
would be the cost of electricity per kilowatt
hour?
It depends on which country you are in. Here,
electricity is very cheap. But in Japan and
Germany, electricity costs are so high. Solar
power could be cheaper in places such Germany
because of government subsidies. In addition,
any excess power generated can also be sold to
the government.
What are your strategies specific to this
region?
By 2010, we intend to continuously expand our
market in this region and double our sales to
$400 million from last year's $220m. We will
focus on five core products, which are
projectors, digital movie cameras, biomedical
equipment, commercial air-conditioners and HIT
solar modules. And the UAE, Saudi Arabia and
Turkey will be our main target markets.
Takashi Hirao
Chairman, Sanyo Gulf
He is also the Chief Regional Officer of Sanyo
Electric, Middle East, Africa and India.
Previously, he was the Vice-President, Sanyo
Electric Co Ltd and the General Manager of
Overseas Sales and Marketing. Hirao, 53, joined
Sanyo in 1977.
He has worked for 13 years in sales in the
company's North American subsidiaries. As
Manager of the AV Division in the sales
department of Sanyo Electric, he led the
division until May 2005. In June 2005 he was
made the President of Sanyo Fisher Company
(USA), a division of Sanyo North America
Corporation, following the merger of Sanyo Sales
& Marketing with Sanyo Electric. Hirao graduated
from the KINKI University in Japan in 1977. |
