Matsushita Electric Moves to China

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Last updated at: (Beijing Time) Saturday, February 02, 2002

Matsushita Electric Moves to China

Matsushita Electric, the world's leading electrical appliance producer, is speeding up the transfer of its production operations to China.

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Matsushita Electric, the world's leading electrical appliance producer, is speeding up the transfer of its production operations to China.

January 25 saw Matsushita-Wanbao (Guangzhou) Compressor Co. officially put a new compressor plant into operation with an annual production of 2.5 million compressors. The joint venture is now the world's largest air-conditioner compressor producer with atotal capacity of six million compressors per year.

A spokeswoman with Beijing-based Matsushita Electric (China) Co., Ltd. said that production equipment for the new plant was transferred from Matsushita's production base in the United Stateswhich was closed last year.

"The recession of the world economy has compelled many transnational companies to seek cheaper labor and better market opportunities. With sustained fast economic growth and an inexpensive labor force, China has been the foremost choice of many Japanese companies, including Matsushita Electric" said the spokeswoman.

Besides the Guangzhou project, Matsushita Electric also launched other major investment projects over the last two months.One of them was the establishment of a 2.5 billion yen semi-conductor company in Suzhou, in east China's Jiangsu province on December 29, 2001. Just a few days before, the company establishedan electrical appliance company in Hangzhou, in east China's Zhejiang province, to produce dust collectors.

By the end of 2000, Matsushita Electric had established 48 enterprises in China with a total registered capital of 8.1 billion yuan (975.9 million U.S. dollars), and a payroll of 34,000.Of the total 48 projects, 41 are production enterprises.

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