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Panasonic Shifts More Plasma Production to China

Panasonic Corporation announced that the company will move a part of plasma display panel (PDP) production facilities at its third Japanese PDP plant in Amagasaki City, near Osaka, to Panasonic Plasma Display (Shanghai) Co., Ltd. (PPDS) in Shanghai, China, to better respond to demand for flat-panel TVs in China.

According to the statement, PPDS, established in January 2001 as a joint venture between Panasonic (then called Matsushita Electric Industrial Co., Ltd.) and Shanghai City, commenced operations in December of the same year and has been engaged in production of plasma display panels and assembling TV sets. The company is producing the equivalent of 25,000 42-inch plasma display panels per month at its plant in Pudong New Area. To accommodate the additional production facility and maximize production efficiencies, PPDS plans to relocate to the nearby Pudong Jinqiao Development Zone. The new production facility plans to commence production with a monthly capacity equivalent to approximately 120,000 42-inch panels in April 2012. Panasonic intends to maximize production efficiency by further utilizing the integrated production system from plasma display panels to assembling TV sets.

The statement goes on to say that the flat-panel TV market is expected to continue growing globally, exceeding 240 million sets in 2012. China’s flat-panel TV market is likely to surpass 50 million units by that time, becoming the world’s largest. The demand for plasma TVs is also expected to grow in China driven by digital TV broadcasting and increased consumer interest in Full HD 3D plasma TVs.

Profile of PPDS

Current Site
Name	Panasonic Plasma Display (Shanghai) Co., Ltd. (PPDS)
Location	No. 1398 Jinsui Road, Jinqiao Export Processing Zone, Pudong New Area, Shanghai, 201206, China
Capital	US$165,000,000
Joint Venture Partner	SVA Electron Co., Ltd.
Ownership Ratios   	Panasonic Corporation: 26.0%
			Panasonic Corporation of China: 25.0%
			SVA Electron Co., Ltd.: 43.0%
			Shanghai Industrial Investment (Group) Co., Ltd.: 3.8%
			SVA (Group) Co., Ltd.: 2.2%
President	Chairman: Qiang Wang (President of Shanghai Yidian Holding (Group) Co., Ltd.)
		Managing Director: Daisuke Motomiya
Board of Directors	Panasonic: 3 members; China: 3 members
Business Operations	Manufacture and sales of plasma display panels, modules and assembly
Construction	January 20, 2001
Production	Plasma display assembly commenced in December 2001
Employees	Approximately 1,700 (as of end of March 2010)
Floor Space	Approximately 56,000 square meters (lot area: Approximately 81,000 square meters)

New Site
New Location	Jinqiao Development Zone, Pudong, Shanghai
Construction	December 2010 (plan)
Production	April 2012 (plan)
Employees	Approximately 2,000 at the time of operation
Floor Space	Approximately 85,000 square meters (lot area: Approximately 100,000 square meters)

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