Daizo Ito, chief executive officer of Panasonic Group in Thailand - a local subsidiary of Matsushita that operates 23 businesses, including 15 manufacturing firms - said the company would spend almost Bt400 million in the remainder of the current Japanese fiscal year (ending in March) to move its ventilation-fan production facility from China to its Panasonic (Thailand) plant in Bang Phli, Samut Prakan.

Work on the new factory will start next month, with the facility to begin operating next July with a production capacity of 50,000 units per month.

About 70 per cent of the fans will be exported throughout Southeast Asia and Japan, making Thailand the main producer of ventilation fans for Asean countries.

The company will continue producing other home appliances such as washing machines and refrigerators, as well as electrical components and parts.

"We decided to promote Thailand as a production centre for certain products in the region to take advantage of Asean free-trade regulations that allow us to export products at tariff rates of between zero and five per cent. This makes our products competitive in any market in Southeast Asia. Thailand has an advantage over other countries due to its geographical position and the quality of local workers," said Ito.

"My responsibility, as CEO of Panasonic Group in Thailand, is to increase the group's business in Thailand and to make our Panasonic brand number one in the market."

In addition to relocating the fan factory, the company will spend another Bt400 million during the next Japanese fiscal year to relocate the production facility for an as-yet-unspecified "automobile product" from Japan to Thailand. Ito said the move was to serve the growing automotive industry in the Kingdom.

Panasonic Group in Thailand expects its sales for the current Japanese fiscal year to reach Bt70 billion, up from Bt60 billion the previous year. The manufacturer aims to increase the proportion of its sales generated by exports from 65 per cent to more than 80 per cent in the next two years, while boosting sales to Bt83 billion.

Last month, Panasonic Group in Thailand began production of 26- and 32-inch LCD television sets at its Bang Phli plant following a Bt35-million investment. The locally produced LCD TVs will replace imported Panasonic units from Japan and China.

"Producing 26-inch and 32-inch LCD TVs in Thailand will reduce their local price by 20 per cent as we will no longer be burdened with import tariffs. This means we can sell our LCD TVs at a competitive price against rivals such as Sony and Samsung, which have already moved their LCD TV manufacturing facilities to Thailand since April this year," said Ito.

Next year, the company will begin exporting LCD sets to neighbouring markets such as Laos, Cambodia, Vietnam, as well as India.

"We expect to increase the market share of Panasonic LCD TVs in Thailand's from its current six per cent to about 20 per cent by the end of October this year," said Ito, adding that total demand for LCD televisions in Thailand is expected to reach between 55,000 and 60,000 units this year, four-times higher than the 14,000 to 15,000 sold last year.

Kwanchai    Rungfapaisarn

The Nation

JAPAN