Matsushita to Consolidate Vacuum Motors in China
Dec 15, 2003
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Matsushita Electric Industrial Co. (MC) will consolidate its Asian production of vacuum cleaner motors into a subsidiary in China to enhance cost competitiveness, The Nihon Keizai Shimbun reported.

Production at the company's subsidiary in Malaysia will be moved to Matsushita's facility in Xiamen, China, which manufactures motors for home appliances. The Chinese plant will be expanded at a cost of several hundred million yen, and the electronics giant plans to double the value of parts made in China to about Y10 billion in 2004.

In November, Matsushita shifted to Xiamen the production of vacuum cleaner motors that were being manufactured in Japan at its Fukui Prefecture subsidiary, which is set to close at the end of this month.

By consolidating the production of these motors, also called blower motors, the company aims to meet the growing demand in China and cut costs through mass production.

The Malaysian unit will continue to manufacture motors for appliances such as vacuum cleaners and air conditioners as well as for information technology equipment such as personal computers.

In April, Matsushita plans to create a new company by integrating its motor operations for IT equipment with Minebea Co. The production of air-conditioner motors will be transferred to Matsushita's subsidiary in Hangzhou, China, and the Malaysian unit will specialize in IT equipment motors. (Nikkei)

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