Matsushita Picks Hangzhou For Manufacturing
Center
Japanese home-appliance manufacturer has picked Hangzhou
as its manufacturing center and has decided to invest
US$230 million in manufacturing facilities there. Hangzhou
in Zhejiang province is situated near Shanghai, China's
largest commercial center and port on its eastern coast.
The new manufacturing complex will cover 270,000 square
meters, and will comprise two two new companies –
one for making home appliances and air-conditioner compressors
and another for processing compressor parts.
Matsushita, maker of Panasonic brand products, will also
relocate a washing machine factory elsewhere in Zhejiang
to the new complex, boosting its annual production capacity
to 2.5 million units by 2006 from about 1.2 million washing
machines now.
The three facilities will become operational in October
2005 and the project will cost about 1.9bil yuan (US$229.6mil).
Chinese consumers are taking an increasing chunk of the
domestic production of home appliances as the country's
standard of living has shown steady increases. The country's
appeal for manufacturers has been high manufacturing productivity,
low costs and increased domestic demand.
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