Matsushita forms unit in RI

Matsushita forms unit in RI

TOKYO (Reuter): Matsushita Electric Industrial Co. Ltd. said yesterday it would form a lithium battery production subsidiary in Bekasi, Indonesia, in June to meet growing demand for the product throughout Asia.

The new company, PT Panasonic Battery of Indonesia, will be capitalized at US$10 million and owned 35 percent by Matsushita and the rest by two of Matsushita's subsidiaries.

The new company plans to start in December production of coin- type lithium batteries, which are used in a wide range of electronic products including card-type calculators, electronic note books and watches.

Matsushita plans to invest about $20 million and to make 50 million lithium batteries at the Indonesian unit in 1997.

Batteries produced at the new plant will be exported mainly to Hong Kong, Taiwan, Malaysia and Singapore.

The new company will be Matsushita's second overseas production base for lithium batteries. The first unit was formed in the U.S. state of Georgia.