Matsushita to make VCR in RI

Matsushita to make VCR in RI

TOKYO (Nikkei): Matsushita-Kotobuki Electronics Industries
Ltd. will complete the transfer of domestic VCR production to its
subsidiary in Indonesia by the end of this year, The Nihon Keizai
Shimbun reported in its Friday morning edition, citing company
sources.

The company hopes to cut costs by taking advantage of cheap
labor and using locally manufactured parts.

The transfer of production began in May. P.T. Kotobuki
Electronics Indonesia already manufactures about 1.2 million VCRs
a year, compared with the 1.7 million VCRs made at a plant in
Ehime Prefecture.

The Ehime plant will produce digital cameras, hard disk
recorders, electronic parts and other products.

Matsushita-Kotobuki, which makes VCRs mainly for the North
American market, has seen profitability deteriorate due to
intensified price competition.

The company's VCR and other video equipment division posted a
group operating loss of Y3.6 billion for the half ended
September, on a 12 percent decline in group sales to Y69.4
billion.