- Panasonic Holdings Corp PCRFY will invest over 50 billion yen in China over three years to build and expand factories making home appliances for the local market.
- Panasonic will bring its first new Chinese appliance factory in 19 years online in 2024, Nikkei Asia reports.
- The Zhejiang province plant will be able to ship an annual 2 billion yuan ($290 million) worth of microwave ovens, rice cookers, and other small kitchen appliances.
- Also Read: Dell Eyes Reducing Dependence On China - India, Latin America Likely To Be Beneficiaries, Analysts Say
- Panasonic will build a new wing at a beauty appliance factory in Guangdong province and expand an air conditioner factory.
- Panasonic will allow critical decisions to be made locally and develop products tailored for the Chinese market to boost sales.
- The report further noted that Panasonic's appliance market share worsens in the single digits in China, where local players like Haier Group and Midea Group dominate.
- With online shopping now mainstream in China, Panasonic will make more products available online and experiment with live commerce.
- Panasonic eyes at least 7 million registered users on its official e-commerce platform by FY24, up from around 2 million.
- Panasonic's China and Northeast Asia operating company registered sales of 832.4 billion yen for FY21. The report adds that Panasonic aims to lift this to 1 trillion yen in FY24.
- China is the largest trading partner for Japan and an important market for Japanese companies, from Toyota Motor Corp (NYSE: TM) and Sony Group Corp SONY to Uniqlo, Bloomberg reports.
- However, since the pandemic broke out in 2020, the Tokyo government urged companies to reduce their dependence on production and supply chains in China.
- Tokyo and U.S. tensions with China hampered corporate investments and business decisions.
- Price Action: PCRFY shares traded higher by 0.99% at $8.15 on the last check Friday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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