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Hitachi stops TV manufacturing

Posted: 25 Jan 2012 ?? ?Print Version ?Bookmark and Share

Keywords:TV manufacturing? Gifu facility? LCD?

Hitachi Ltd has announced that it will stop making TVs in Japan by September this year. Instead, it will convert its remaining flatscreen manufacturing facility, the Gifu facility, to make LCD projectors and semiconductor parts, which have brought more profits for the company.

In August last year, Hitachi has mentioned that it was considering of closing down its TV business. The company cited intensifying price competition as the reason for its move. But Hitachi is not the only one facing price problems in the TV space. The Japanese TV manufacturing business, in general, has been facing a lot of problems lately. Even Sony and Panasonic have been downrated by investment analysts and both companies have stated that the losses in their TV divisions is the major factor.

Hitachi's Gifu plant is its last TV factory in Japan and makes an average of 100,000 TVs a month. Compared to the company's rivals, it's pretty small-scale and has a workforce of just around 250.

Currently, the company is outsourcing its TV production to other countries and focusing its Japanese operations to making components for the products, then buying in finished products for third-party manufacturers.

Hitachi is in the process of transferring its TV business from its consumer electronics division to its consumer marketing division. This highlights the company's plan of selling TVs, but not manufacturing them.

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