logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: Panasonic To Shut Plasma TV Plant In Shanghai

Japanese consumer electronics giant Panasonic Corp. (PC) will shut down its plasma television assembly plant on Shanghai as part of the company's efforts to streamline its flagging television business, according to media reports on Friday.

Panasonic's majority-owned joint venture with a Chinese company for the purpose of running the factory will be liquidated. The Shanghai plant has reportedly stopped operations.

According to the media reports, the operations at the Shanghai plant will be transferred to another factory in China's Shandong province, where it currently produces LCD television sets.

Although the plasma technology was initially considered for Panasonic's wide-screen televisions, rapid developments in LCD panels have made it difficult for the company to generate profits from plasma televisions. LCD televisions now dominate the market.

Media reports in November 2012 had indicated that Panasonic will slash another 10,000 jobs by the end of March 2013 as about 20 percent its 88 business units were losing money.

The 94-year-old company is in the process of cutting costs after it projected in October a staggering $10 billion loss for fiscal 2012 on asset write downs and restructuring charges. This will also take the cumulative losses in the past five years to nearly $25 billion.

Panasonic reportedly targets group operating profit of at least 200 billion yen or $2.5 billion in the year ending March 2014, primarily through sale of about $1.4 billion worth of land and buildings in Japan.

Panasonic reported its last annual profit in 2010. The company is expected to announce a turnaround plan by end-March 2013.

PC closed Friday's trading at $6.26, up $0.16 or 2.62 percent on a volume of 168,489 shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Even after two years of thoroughly searching across the Indian Ocean, using modern technologies and devices, there is no clue about the Malaysian airline that vanished on March 8, 2014. Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations. Backtracking on its early announcements on digital privacy, WhatsApp is planning to share member information, phone numbers and analytical data with Facebook, to make revenue from the platform.
comments powered by Disqus
Follow RTT