I-Bhd, a Malaysian home appliance producer, announced that it plans to outsource its home appliance business and close its manufacturing operations in northern Perak state.
"We strongly believe that we will be able to turn around this loss-incurring operations by embarking on (a) new strategy to outsource the production of our home appliances," Eu Hong Chew, the company's chief executive, said in a statement.
"This is a painful decision to make, but we have no other choice after having explored all options and exhausted all avenues to cut our production cost that has priced us out of the highly competitive home appliances market at home and abroad," Mr. Eu said.
I-Bhd. said it will lay off 170 employees as a result of the plant closure but will give employees termination benefits.
The company was established in 1967 under the name Sanyo Industries (Malaysia) Sdn. Bhd. A Malaysian company took over the firm in 1999 and renamed it I-Bhd. (Dow Jones)
to Daily News