OSAKA – Panasonic Corp. will stop making televisions in China as part of measures to turn around the money-losing business, sources close to the matter said Saturday.
The electronics giant will also consider selling its plant in Mexico, which makes TVs for the North American market, they said.
A sharp drop in TV prices in North America and China has forced Panasonic to end local production in the two countries, the sources said.
On Friday, Panasonic halted production at its Chinese plant in Shandong Province, where it had been making about 200,000 liquid crystal display TVs a year.
The joint venture that runs the Chinese factory will be liquidated and some 300 workers there dismissed, the sources said. It is Panasonic’s only TV factory in China, following the 2013 closure of a Shanghai plant that had been making plasma TVs.
Panasonic will start procurement from other manufacturers to continue TV sales in China, the sources said.
Aside from China and Mexico, the company makes TVs in the Czech Republic and Malaysia. It sells around 7 million TVs a year globally.
Other Japanese electronics makers have also been revamping their TV businesses due to climbing competition. Sharp Corp. has withdrawn from in-house production and sales in Europe, while Toshiba Corp. has decided to stop development and sales in North America and license its TV operations in the region to a Taiwanese firm.