Asia Bizz: Tokyo-based electronic manufacturing company, Toshiba made an announcement on November 30, 2011 that it will be shutting down three of its semi conductor factories in Japan. The company said that the closing of the factories is a part of the reorganization of its business while dealing with falling profits.
Toshiba also stated that it would slowdown the production in other plants this winter as the demand for electronic goods in the West has reportedly gone down. The shutdown of the factories would mean that production will be moving to the other three existing factories.
This move is likely to allow the company to focus on cost competitiveness and also on higher value added products. Last month, the company announced that there was a drop of 18.5 % in the net profit due to the strong Yen and also the impact of the earthquake in the month of March.
The revenue profits also declined due to the slump in the digital products as well as the electronics devices business that were hit by Yen and earthquake. Due to the strong Yen, Japanese exports became less competitive and takes off the share on the profits. Toshiba stated that the shutdown of the factories would allow them to concentrate on production at the major facilities.