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.