Panasonic will close Thailand's washing machine and refrigerator factory

Panasonic will close Thailand's washing machine and refrigerator factory

According to reports, Panasonic announced that it will close Thailand's washing machine and refrigerator production plants. It is understood that Panasonic's production of washing machines and refrigerators in Thailand has continued since 1979, but they will be discontinued in September and October this year, and the R&D base will also be closed. According to Panasonic's plan, the Thai factory that produces washing machines and refrigerators will be closed in March 2021, and production functions will be transferred to the Vietnam factory. The Vietnam factory is the largest refrigerator and washing machine production base in Southeast Asia, and plans to export products from Vietnam to Thailand after the completion of production intensive.

　　 After closing the factory in Thailand, about 800 employees will be laid off. A Panasonic spokesperson said that some workers will be placed in other jobs based on their seniority. Panasonic will still have approximately 13,700 workers engaged in the production of small electrical appliances and batteries in Thailand.

　　 Panasonic’s results from April 1, 2019 to March 31, 2020 show that the company achieved sales of 7490.6 billion yen, a year-on-year decrease of 6.4%. According to reports, Panasonic has proposed a plan to cut costs by 100 billion yen (approximately 6.7 billion yuan) within three years to March 2022, and this adjustment is also part of the plan.

　　 It is also understood that Panasonic has started producing air conditioners in Thailand in 2017. At that time, the Nikkei website reported that the new production line has an annual production capacity of 500,000 units, of which 60% of the products are sold in Vietnam.