Matsuhita's reorganization

Matsuhita's reorganization

TOKYO (Dow Jones): Matsushita Electric Industrial Co. plans to
reorganize and consolidate its home appliance manufacturing bases
in Asia by product over the next few years to boost its
competitiveness, a company spokesman said Wednesday.

Matsushita plans to strengthen its production of refrigerators
in Thailand, making the Thai plant its core manufacturing base in
Asia. It currently produces refrigerators in Indonesia, the
Philippines, Malaysia, Taiwan and Thailand.

For washing machines, the company plans to consolidate
production in Malaysia, while it now manufactures them in
Indonesia, the Philippines, Malaysia and other nations.

Through the move, Matsushita aims to increase its annual
output at the two plants to over 1 million units - as stated in
its guidelines for its overseas plant reorganization, the
official said.

"In addition to our efforts to seek better production
efficiency, the move is prompted by the AFTA (ASEAN Free Trade
Area) concept," he said.