Osaka lighting equipment plant construction in 1967, Tokyo factory built in 1990, two factories mainly produce LED lighting, but the plant aging leads to poor productivity. Panasonic plans to sell these two plants, which will reduce the number of its domestic factories to 10.
Although Matsushita Lighting business at first, but the lower lighting equipment manufacturer's product prices in developing countries share in the Japanese market, Panasonic diluted margins. Fiscal 2014, Matsushita Lighting business achieved sales of 317.7 billion yen, but its operating profit margin of only 4.7%, less than 5% of the target set by Matsushita, so the lighting business will become the object of reorganization. Panasonic expects, after restructuring its lighting business in fiscal year 2015 to achieve sales of 342 billion yen, operating profit margin of 6.1%.
Panasonic also decided to close before the end of October this year, which is located in Indonesia LED lighting equipment factory, all future sales in Japan of lighting products will be produced in the country. Matsushita measures to reform the business also includes effective research and development expenses, as well as to high-profit areas.
"In the last fiscal year we completed the structural reforms," ??Matsushita President Tianjin He Yihong said, "Focus on these six businesses, our goal is to make sales growth driven profit improvement."
Although Panasonic has taken rapid restructuring measures, such as closing the Beijing Li-ion battery factory, but also the emergence of new problems, its air purifier sales slump in China, is one of them.
