March 24 (SeeNews) - Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC) said Thursday it will invest some JPY 8 billion (USD 71m/EUR 63m) in its overseas subsidiaries through September as part of an international expansion strategy for its solar inverter business.
The move is aimed at accelerating global business of TMEIC’s photovoltaic (PV) inverters for large-capacity solar power generation systems, global demand for which is surging on account of falling construction costs and favourable renewable energy policies. The goal is to maintain its leadership position in the industry not only in major solar destinations like North America, China and India, but also in Southeast Asia, Latin America, the Middle East and Africa among other emerging markets.
As part of the plan, TMEIC will allocate approximately JPY 4.5 billion of the total to make capital reinforcements for its units located in India, the US, China, Southeast Asia and Europe in order to boost their financial base and working capital. The remainder will be used to improve the production capacity of its Chinese, US and Indian manufacturing bases, as well as for the construction of a second factory in the latter county, worth JPY 2.5 billion, by mid-2017. In terms of geographical location, India will bag as much as 50% of the overall funds, the statement shows.
All in all, TMEIC, which is a joint venture (JV) between Japanese companies Toshiba Corp (TYO:6502) and Mitsubishi Electric Corp (TYO:6503), is set to boosts inverter sales and oversea production capacity to JPY 100 billion and 7 GW by fiscal 2017. This compares to JPY 60 billion and 2 GW at present, respectively.
(JPY 100 = USD 0.887/EUR 0.794)