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.