Panasonic transformation to turn off the shadow of the two local lighting factory

According to Japanese media reports, the Panasonic Corp is currently the second round of restructuring, plans to shut down two lighting equipment manufacturing plant in Japan before the end of September.

2014 fiscal year, Panasonic completed the reorganization of the digital TV, semiconductor and other loss of digital business. Panasonic will focus on lighting, batteries and other six low rate of business transformation.

Panasonic lighting systems subsidiary of the two factories are located in Osaka and Tokyo, about 250 employees will be transported to other factories. After the two factories closed, production will be transferred to the nearby city of Victoria and the city of Dan factory. Panasonic will invest 1 billion yen ($8 million 180 thousand) for the LGA factory and factory automation production tamba. Panasonic plans to increase the capacity of the 30% plants, and thus improve the overall capacity of Panasonic lighting equipment.

Panasonic lighting factory in the city (pictures from the Nikkei news website)

Osaka lighting equipment factory was built in 1967, the Tokyo factory was built in 1990, the two factory mainly produces LED lighting equipment, but the aging of the factory led to low production efficiency. Panasonic plans to sell the two plants, reducing the number of its factories to as much as $10.

Although Matsushita lighting business in Japan, the market share of the first, but the development of lighting equipment manufacturers in the production of lower prices, dilute the Panasonic's profit margin. 2014 fiscal year, Panasonic lighting business to achieve sales of 317 billion 700 million yen, but its operating margin was only $4.7%, lower than the target set by Panasonic's 5%, so the lighting business has become the object of reorganization. Panasonic is expected to restructure its lighting business in fiscal year 2015 to achieve sales of 342 billion yen, operating profit margin of up to 6.1%.

Panasonic also decided LED lighting equipment factory in Indonesia closed before the end of October this year, all future lighting products sales in Japan will be in the domestic production. Panasonic's reforms to the business include effective R & D spending, and a shift to high profitability.

In the last fiscal year, we completed the structural reform, Panasonic President Tsuka Chihiro said, focusing on these six businesses, our goal is to make sales growth to promote profit margins. "

Although Panasonic has taken a quick restructuring, such as shutting down the Beijing lithium battery plant, but new problems are emerging, its air purifier sales slump in China is one of them.

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