Japan's Matsushita Electric Industrial, best known for its Panasonic brand of consumer electronics and digital communications products, is promoting Thailand as its manufacturing and research and development (R&D) centre for the Asia-Pacific region through the establishment of its new local subsidiary, Panasonic Automotive System Asia-Pacific.

The group has investment plans of more than Bt800 million in Thailand for fiscal years 2006 and 2007 for relocating production facilities for home appliances and car equipment from other countries.

With the establishment of the new Panasonic Automotive System Asia Pacific since the beginning of this month, the Panasonic Group has consolidated all business activities related to car equipment into a single business unit that includes production, sales and R&D. The company has also moved part of its R&D facility for car audio and navigation systems from its headquarters in Japan to the new centre in Bangplee, Samut Prakan.

The group has merged Panasonic Automotive System (Thailand), a local production unit for car audio systems, into the new company. More than 10 sales staff at Panasonic Industrial (Thailand), which has been in charge of selling car audio systems directly to local car makers, have also been moved to the new company.

"We are making a significant move to promote Thailand as our production base for home appliances and automotive equipment including car audio and navigation systems," said Daizo Ito, group CEO in Thailand. "We are committed to allocating a total investment of Bt800 million in relocating facilities both for home appliances and car equipment to this country."

He said an investment of Bt350 million would be made for expanding new production facilities for car audio and car navigation systems.

Ito said that almost Bt450 million has already been invested by Matsushita during 2006 in moving its home appliance facilities, including refrigerators and washing machines, from Malaysia to Thailand. The company has also expanded local production for LCD television sets, in order to serve growing domestic demand.

"We will also move the manufacturing facility for ventilation fans from China and Japan to Thailand. The new local facility for fans will be located at Bangplee and will be operated in March by the company's local production unit Panasonic Ecology System [Thailand]," Ito said.

He said Panasonic has already moved its production facility for electronic toll card systems from the Philippines to the Bangplee plant since January this year. The company will also set up a local manufacturing facility for a car navigation system some time next year.

Ito said the Panasonic Group currently exported 69 per cent of its local production in home appliances, automotive equipment and electronic components from Thailand to markets round the world, including Japan. He said the company planned to gradually increase its exports year on year.

"The relocation of manufacturing facilities for home appliances and car equipment to Thailand is set to benefit greater local demand.  Geographically, Thailand is the centre of Southeast Asia and Indochina. Thailand also has good infrastructure including Suvarnabhumi Airport and highways that link the Kingdom with all neighbouring countries," Ito said.

Kwanchai Rungfapaisarn

The Nation