BOI clarifies that Panasonic closes small factories but continues to expand investment in Thailand

Trading

Bangkok, July 3 – BOI pointed out that Panasonic has adjusted its production base. It is a realignment of the company’s global strategy. to increase business efficiency Recently, more investments in Thailand by moving the production base of automatic equipment from China and Japan to Thailand Emphasizes that the electronic components industry gradually continues to invest in Thailand. After traveling to target groups to attract investment, it has been revealed that within 5 months, investment promotion in the electrical and electronic appliances industry has reached more than 143 billion baht.

Mr. Narit Therdsateerasak Secretary-General of the Board of Investment (BOI) revealed that in the case of news that Panasonic Ecology Systems, Samut Prakan Province was closed in June 2023. BOI was notified by the Company’s management. as part of the restructuring plan and business strategy of the parent company in Japan by merging factories with similar products into a large factory and shut down small factories cause in part of Thailand There will be a closure of a small factory. But at the same time there will be additional investments in many other products as well.

Panasonic Group Thailand currently has a total of 11 factories, of which 4 large factories account for 80% of the group’s sales and 7 small factories account for 20% of the group’s sales from 2020. Factories 3 small factories in Thailand gradually closed down to combine with a larger factory in the same product for the factory that was closed in June. It is the fourth small factory to produce ventilation fans. Under the name of Panasonic Ecology Systems, the remaining three small factories are important factories that continue to produce products.

For four large plants located in Thailand that produce automotive infotainment systems, batteries and industrial equipment. Continue to continue production and expand investment continuously. With the closure of factories in foreign countries to use the production capacity in Thailand as well.

Recently, Panasonic Industrial Devices Inc., Japan and China which produces parts for Electronic Measuring Instrument and automation equipment such as Programmable Logic Controller (PLC), which is a product lineup with sophisticated technology and highly skilled workers. has moved its production base to Thailand resulting in the use of raw materials and employing a large number of workers in Thailand. Including in Thailand, there are regional offices in the production of Switch, LED, Lighting and the company’s research and development center for infotainment products in the automotive industry in Thailand.

The electronic parts industry group It is one of the important target industries that Thailand wants to attract investment to create sustainability for the industrial sector in Thailand. And due to geopolitical problems, the electronics industry has moved production bases to strengthen the supply chain. After the BOI has organized proactive activities to attract investment according to new investment promotion policies both domestically and internationally in the past 9 months. It has traveled to road shows in Japan, the United States, China, South Korea and Europe. Investors are interested and have applied for investment promotion from the BOI continuously.

“In the past, the electronic parts industry has been experiencing problems from trade wars and international conflicts that have affected the production chain. multinational companies Therefore, the business strategy must be adjusted. Including wanting to merge within the company to increase production efficiency in the part of the Panasonic group It can be seen that the company has chosen Thailand as the production base for products that use high technology and manufacturing skills such as PLCs, automotive electronics. or product research and development This shows the confidence towards Thailand, especially the readiness of the supply chain. and continuity of business operations Including the growth potential of the advanced electronic components industry that will be an important base for other future industries such as electric and digital vehicles, ”said Narit.

For the past five months (January – May 2023), the BOI has promoted investment in the electrical and electronic industry for a total of 79 projects worth 143,860 million baht, an increase of more than 7 times from the same period last year. In addition to Panasonic’s investment projects There are also interesting investment projects in the electronic components industry, such as manufacturing parts for fiber-optic telecommunications systems. and power chip system for electric cars from China who decided to invest in Thailand.-Thai News Agency

Source: Thai News Agency