Matsushita Taiwan aims for No. 1 in domestic home appliance market

Taipei, Jan. 26, 2005 (CENS)--Matsushita Electric (Taiwan) Co., Ltd. Will cut the number of parts suppliers by 50% to cut costs and aims for the No. 1 supplier of household appliances in Taiwan by the end of 2007, with a 30% share of the local market for liquid crystal display (LCD) TVs, refrigerators, washing machines, and digital versatile disc (DVD) player/recorders.

Matsushita Taiwan chairman Hung Ming-hung also claimed that his company aims to achieve an overall profit rate of 10% in 2007. Matsushita Taiwan's profit margin was 5% in 2004, meeting Matsushita Japan's requirement two years ahead of schedule, Hung said.

Hung stressed that Matsushita Taiwan's future products would enjoy stronger competitiveness with better technique, function, environment-protection performances than counterparts. The chairman also added that his company would try to cut production costs to maintain profit margins.

Matsushita Taiwan would decrease the number of over 500 parts suppliers currently to about 200 in next few years so as to further integrate the company's procurement operations to cut costs. The firm will continue pursuing several goals such as higher value-added products, lower material inventory, better quality, and cost rationalization.

A senior Matsushita Taiwan official said that his company scored revenues of NT$33 billion (US$1.03 billion at US$1: NT$32) in 2004, a record high in the firm's 42-year history and representing a double-digit growth from one year earlier.

Matsushita Taiwan will continue strengthening its labor division scheme between its plants in Taiwan and in mainland China (Xiamen, Fujian Province). The former would concentrate on the production of white-appliance products (such as refrigerators, washing machines, micro ovens etc.) digitized items, and the latter cooking appliances, electric motors, and auto electronics, Hung said.

The company aims to develop more new products that meet local consumers' tastes this year, including digital appliances, digital TVs, set-top-box (STBs), LCD TVs, auto electronic products and next-generation automobile navigation systems.

Matsushita Taiwan was the No. 1 seller of LCD TVs, refrigerators and washing machines on the island in 2004.