Panasonic to close Indonesian plant, report says (dpa German Press Agency)

Tokyo (dpa) – Panasonic Corp will close a factory for
light-emitting-diode (LED) products in West Java, Indonesia by the
end of October and dismiss about 500 employees, a report said

The closure of its sole overseas plant for LED products is part of
efforts to raise the profit margin of the business, the Nikkei
business daily reported without citing any sources.

Production equipment will be shipped to the company’s key domestic
plant in Mie prefecture, which will take over manufacturing. But the
company does not plan to hire new workers, the Nikkei said.

About 80 per cent of the Indonesian plant’s output is bound for the
Japanese market, but the depreciation of the Japanese currency has
driven import costs higher, the report said.

Panasonic could not be reached for comment.