Matsushita Electric Company has decided to halt the manufacture and sale of washing machines and refrigerators at its Bangi Industrial Site in Malaysia, effective from Oct. 1, 2005.
The company said that the decision was made after taking into account the accumulated losses incurred by the businesses, unfavorable forecast for growth and profitability, and the current capacities of its two other plants in Shah Alam, Selangor, which are devoted to the production of other existing profitable product lines.
The company said it would consider various options to deal with the land site and building -- and production equipment and molds currently utilized -- to ensure an orderly and proper discontinuation of the businesses.
Matsushita said its board had also approved the implementation of a scheme for termination of the services of the employees based at the Bangi plant, which will affect about 300 people.
Going forward, the company said its associated company, Panasonic Malaysia Sdn Bhd, would continue to sell Panasonic washing machines and refrigerators in Malaysia by sourcing from other countries and, at the same time, assure Panasonic customers that continuous support shall be maintained. (AFX-Asia)
Back to Breaking News