Aiwa to close plants in 2002

Aiwa to close plants in 2002

TOKYO (Reuters): Ailing Japanese electronics group Aiwa Co Ltd said on Wednesday it would close all five of its domestic plants by the end of March 2002 as part of restructuring efforts aimed at dragging it back into the black.

The company, which announced a dramatic revival plan last month, said it would announce on April 26 plans to consolidate its global manufacturing operations at its Malaysian or Indonesian plant.

In late March, Aiwa said it would consolidate three production lines with nine separate factories -- in Japan's Iwate prefecture, Malaysia and Indonesia -- into a single line with one factory.

The audio and video equipment maker, owned 50.5 percent by Sony Corp, said last month it would halve its workforce, close all but one of its nine factories and pull out of unprofitable products in an aggressive restructuring aimed at returning it to profitability by 2003.

Aiwa runs five production bases in Japan with a total workforce of 720. All employees will be dismissed by March 2002, a spokesman said.