Panasonic Malaysia Closes PAVCKM Operations, 400 Workers Affected

SHAH ALAM: Panasonic Malaysia Sdn. Bhd. (Panasonic) will close the TV production operations of Panasonic AVC Networks Kuala Lumpur Malaysia Sdn. Bhd. (PAVCKM) here, starting this September.

Panasonic in a statement said the closure of PAVCKM will affect 400 of its employees by the end of March, after the company also stops production of Technics-branded Hi-Fi audio at the end of February next year.

It said, however, that it will cooperate with authorities, government agencies and the Electronics Industry Workers Union (EIWU) to ensure affected workers are given support including job placement assistance and career transition.

“Production by PAVCKM will be transferred to other Panasonic Group entities as part of efforts to strengthen competitiveness and optimise Panasonic’s production in Malaysia.

“(However) Panasonic will continue audio product manufacturing in Malaysia and at the same time improve the overall effectiveness of its production activities, including sales and services for TVs and audio products in Malaysia,” it said.

In the same period, PAVCKM will also transfer Blu-ray Disc player production operations to China Hualu Panasonic AVC Networks Co., Ltd. (CHPAVC) in China as part of efforts to strengthen the competitiveness of the Panasonic AVC business.

Panasonic in the same statement informed that Malaysia nevertheless remains a key regional hub, employing up to 12,000 workers across various business fields including high-value manufacturing, research and development as well as corporate activities.

“As a commitment to the country and the local community, Panasonic will continue to invest in Malaysia in support of its development strategy for its high-value supply chain,” it said.

Utusan Malaysia