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)