Panasonic has closed its remaining TV manufacturing factory in China. The company is selling its plant in Mexico as part of a restructuring plan aimed at stemming losses. The Japanese electronics company has been forced to pull out local production in the two countries due to a sharp decline in TV prices in North America and China.
Panasonic will cut back overseas production by 700,000 units per year. In china, the company has stopped 80 percent of production in its joint venture in Shandong Province. The firm further plans to go for settlement with several hundred workers there likely to be laid off. It also has the plan to continue the selling-process of TVs in China by outsourcing production for the roughly 200,000 units. The company now envisages to focus more on high-resolution models and other high-value-added TVs. It is struggling hard to boost the company's earnings in the TV segment. It has been losing money over the last six years. Now the company expects to sell over seven million TVs worldwide this year.
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Interestingly, the other Japanese electronics manufacturers have also meanwhile refurbished their TV business on account of competition in the market today. The well known Sharp Corp has withdrawn from in-house production and sales in Europe, while Toshiba Corp. has decided to stop development and sales in North America and to grant license for its TV operations in the region to a Taiwanese firm.
