Panasonic to Launch In-House Company for Operations in China

Taipei, Nov. 12 (Jiji Press)--Panasonic Corp. <6752> will set up an in-house "company," or independent division, to supervise operations in China at the beginning of next April, Executive Officer Sadaaki Yokoo said on Monday. The move is aimed at quicker decision-making and reflects the Japanese electronics group's "resolve to join full-blown competition" in China, Yokoo told reporters in Taipei. In China, Panasonic initially enjoyed an advantage as the first foreign company to launch a joint venture for cathode ray tube television displays in 1987. Since the 2000s, however, Panasonic has been struggling with sluggish sales in China, due to competition from Chinese and South Korean rivals. The Japanese maker's share of the Chinese home electronics market is now below 10 pct, according to Yokoo. Panasonic aims to improve its competitiveness in China by promoting operational integration under an in-house company. The group currently has four in-house companies responsible for different business segments. Until now, it has not set up any region-specific in-house company. The planned Chinese business division will also cover operations in other Northeast Asian markets, including Hong Kong, Taiwan and South Korea. Panasonic also plans to launch yet another in-house company, for U.S. operations. END