Electronics manufacturing giant Panasonic has shut down its remaining TV manufacturing factory in China. A report on January 31, 2015 said that it will also sell its plant in Mexico as a part of the restructuring plan. The Japan based electronic giant was forced to shut down its productions due to a heavy decline in the TV prices in North America and China.
The report added that the recent move will lead to a cut in production by 700,000 units per year which will lead to a 10% 0f the worldwide output. Panasonic stopped the production in China which was 80% owned joint venture in Shangdong Province. The company is also planning to liquidate the venture which will result in a lay-off of several hundred workers.
However, Panasonic will continue to outsource the production of TVs and will supply in China. The company will be outsourcing about 200,000 units a year that it used to manufacture inhouse. Panasonic is also planning to sell off its plant in Mexico which has annually manufactured, 500,000 units. These units were mostly shipped to the US market. The company is now focusing towards high resolution models and high value added TVs.
Panasonic in recent times has been struggling to improve its earnings in the TV segment.