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
Cable-cutters have now one more reason to do so as live television streaming will be available on YouTube TV in 14 more markets in the U.S. Facebook Chief Operating Officer Sheryl Sandberg has donated nearly $100 million in Facebook shares to charity. This is her second charitable donation within a year. A document was filed on Thursday with the Security and Exchange Commission, which shows that Sandberg transferred shares to a special fund she uses for charitable donations. Ford Motor Co.'s new CEO Jim Hackett has taken a more cautious approach to the automaker's plans for rolling out autonomous vehicles. Ford is currently undertaking a 100-day review of its operations and Hackett indicated at delays to the company's plans to launch a fully-autonomous vehicle by 2021.
comments powered by Disqus
Follow RTT