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NEC LCD restructures, to close Kagoshima plant

Posted: 06 Mar 2009 ?? ?Print Version ?Bookmark and Share

Keywords:LCD manufacturing? plant Kagoshima? consolidation manufacturing?

NEC LCD Technologies Ltd will perform structural reforms that the company says will strengthen efficiency and global operations through consolidation of manufacturing locations.

The global recession and financial turmoil has caused a substantial reduction in demand for LCD products. Furthermore, the losses associated with an unfavorable foreign exchange environment and no short term recovery have forced NEC LCD Technologies to take action to reduce fixed costs and achieve a higher level of cost efficiency. It is expected that these reforms will strengthen the company and lead to higher levels of competitiveness in the market.

In pursuit of these goals, NEC LCD Technologies' Kagoshima plant will close at the end of December 2009, at which time production will be integrated into the company's Akita plant. This action will eliminate the overlapping functions and operations between the two plants. Moreover, part of the company's Kanagawa headquarters' operations will be transferred and consolidated to the Akita plant for additional efficiency.

Staffing is also expected to be reduced from 1,190 to approximately 600 by the end of March 2010, achieved primarily through a voluntary retirement program.

"NEC LCD Technologies remains committed to the growth of our LCD business, to the industrial markets that we serve, and to our valued customers and partners that have helped us achieve a leading position in the market," said Toshihiko Ueno, president of NEC LCD Technologies. "Our worldwide business strategy remains unchanged and with the current restructuring, we expect to further strengthen our competitive position in the market."

There will be no disruption to the supply of existing products and the company will continue its new product and technology development plans, such as 3D and electronic paper technologies.

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