Matsushita plans US$320m plant

Japanese consumer electronics firm Matsushita unveiled plans to build a US$230 million home appliances factory in China's Zhejiang province. The 270,000 sq meter complex will produce appliances including washing machines, air conditioner compressors and process a range of parts. The new facility is due to be operational by October 2005. Some of Matsushita's existing mainland production will be consolidated into the plant, seen as a way of reducing costs to better compete with rivals such as Chinese producer Haier and South Korea's LG. The plant will mainly produce for the Chinese market although the company said it may later look at exporting some of its products from the plant.