Panasonic remains loyal to Thailand
Panasonic does not think about after 50 years Thailand to leave. This year's floods are not the first disasters the company has experienced.
"We're not moving out just because of this flood, as our investment strategy takes into account the medium- and long-term prospects of Thailand, not just the impact of one event," said CEO Hitotaka Murakami.
Panasonic has twelve companies in Thailand. Three factories have been closed: one at Rojana Industrial Park and two at Nava Nakorn. The two remaining factories in Chachoengsao and seven in Samut Prakan have had to cut production due to a shortage of parts. Murakami is concerned about those factories, which may also be affected by the flood in the coming weeks. The damage would then be enormous because 80 percent of what is produced there is destined for export. Production of some parts has already been moved to Japan.
The company expects sales in the third quarter of fiscal 2011, which ends March 31, to be impacted, but will pick up in the fourth quarter. Spending on consumer goods and electrical appliances is expected to increase sharply after the floods. The forecast of 22 billion baht in domestic sales this year, 2 billion more than last year, therefore remains unchanged, says Muramaki, who does not mention export figures.
The best-selling products are the Panasonic Viera LCD TV, digital cameras and air-conditioners. According to figures from the Board of Investment, the company has invested 9 billion baht in its factories in Thailand, but according to Muramaki the actual amount is higher.