Matsushita bets big on plasma

Iria · Dec 3, 2005, 12:05 AM

Matsushita's new plasma display factory near Osaka, measuring roughly 15 football fields, is a reminder that size matters but is not the only key to success in the flat-screen TV business.

Matsushita Electric Industrial, the world's top consumer electronics maker known for its Panasonic brand, said on Friday that it would double output at its $790 million plant in Amagasaki City by July, two months ahead of schedule, as it rushes to meet explosive demand for plasma TVs.

That investment is part of an industry-wide spending spree that has led to an oversupply of flat panels, pushing prices down sharply and pushing several players including Pioneer and Sony into the red.

South Korean plasma display makers Samsung SDI and LG Electronics--both slightly larger than Matsushita--are also pumping up capacity, but their plasma operations lost money in the second quarter and only managed to break even on an operating basis in the third.

Matsushita has been one of the few flat-TV makers to post profits consistently because it possesses a rare combination of size, efficiency and the pricing power that comes with a strong brand, analysts said.
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Read More / Source: News.com

Dec 3, 2005, 12:05 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Matsushita bets big on plasma Matsushita's new plasma display factory near Osaka, measuring roughly 15 football fields, is a reminder that size matters but is not the only key to success in the flat-screen TV business. Matsushita Electric Industrial, the world's top consumer electronics maker known for its Panasonic brand, said on Friday that it would double output at its $790 million plant in Amagasaki City by July, two months ahead of schedule, as it rushes to meet explosive demand for plasma TVs. That investment is part of an industry-wide spending spree that has led to an oversupply of flat panels, pushing prices down sharply and pushing several players including Pioneer and Sony into the red. South Korean plasma display makers Samsung SDI and LG Electronics--both slightly larger than Matsushita--are also pumping up capacity, but their plasma operations lost money in the second quarter and only managed to break even on an operating basis in the third. Matsushita has been one of the few flat-TV makers to post profits consistently because it possesses a rare combination of size, efficiency and the pricing power that comes with a strong brand, analysts said. ____________ Read More / Source: News.com