Matsushita Co. sets up fourth re-export base

Matsushita Co. sets up fourth re-export base

JAKARTA (JP): Matsushita Electric Industries (MEI) Co., of
Japan, a major world producer of audio products, has expanded its
partnership with PT National Gobel of Indonesia, making the
country's oldest electronic company its fourth re-export base.

"We will try to expand our re-export operations by building on
your proud achievements," the Japanese company's audio division
director, Fumio Ohtsubo, said here yesterday at a ceremony to
mark the launching of the re-export project, which both companies
call Global 2000.

He admitted that his company is facing tougher competition on
the world market. "We have to find our own strategies to sharpen
our competitive edge," he noted, adding that relocating some
parts of its production units from Japan is one way to beat the
competition.

He said that by choosing Indonesia as one of its re-export
bases, Matsushita will be able to further lower its costs.

Matsushita has already set up three re-export bases in Asia:
MAX in China, MAV in Malaysia's Johor and MESA in Singapore.

The Japanese company supplies the four bases, including the
Indonesian project, with components which are made in Japan.

Asked about the Global 2000's total investment, Ohtsubo only
said: "It's very small. We have been in cooperation for 25 years,
so the structure is there and we only need a small amount of
money to realize the project."

National Gobel, which started operations in 1954 and has
cooperated with Matsushita since 1970, is the largest producer of
radios in Indonesia, with a 60 percent share of the domestic
market.

President of PT Gobel International Corporation, Rachmat
Gobel, pointed out that through the project, his company aims to
expand its export from approximately US$30 million to about $120
million by the year 2000. (13)