Matsushita Taiwan Aims for Top Spot in Appliance Market
Jan 26, 2005
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Matsushita Electric (Taiwan) Co., Ltd. will cut the number of parts suppliers by 50 percent to cut costs. The move is part of the company's plan to become the number one supplier of household appliances in Taiwan by the end of 2007, with a 30-percent share of the local market for LCD TVs, refrigerators, washing machines, and DVD player/recorders.

Matsushita Taiwan Chairman Hung Ming-hung said the company aims to achieve an overall profit rate of 10 percent in 2007. Matsushita Taiwan's profit margin was 5 percent in 2004, meeting Matsushita Japan's requirement 2 years ahead of schedule, Mr. Hung said.

The chairman also added that his company would try to cut production costs to maintain profit margins.

Matsushita Taiwan would decrease the number of parts suppliers from 500 to about 200 in next few years to further integrate the company's procurement operations to cut costs. The firm will continue pursuing several goals such as higher value-added products, lower material inventory, better quality, and cost rationalization.

A senior Matsushita Taiwan official said that his company scored revenues of NT $33 billion (approx. U.S. $1.03 billion) in 2004, a record high in the firm's 42-year history and representing a double-digit growth from 1 year earlier.

Matsushita Taiwan said it will continue strengthening its labor division scheme between its plants in Taiwan and in China. The former would concentrate on the production of white-goods, digitized items, cooking appliances, and electric motors, Mr. Hung said.

The company aims to develop more new products that meet local consumers' tastes this year, including digital appliances, digital TVs, set-top boxes, and LCD TVs. (

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