TOKYO—Matsushita Electric Industrial Co. announced its cell phone unit will close a Great Britain-based plant in an effort to further reduce costs by moving production to China and Eastern Europe.
The Thatcham plant employs about 350 people and its closure follows the closure of another British mobile phone plant in Portsmouth, which employed 200 people, earlier this year. Matsushita said production will begin at a new Czech plant in April. “It is external pressures such as the downturn in the European market for mobile phones coupled with unfavorable exchange rates that have led to this regrettable decision,” said Matsushita’s managing director, Masahiko Yamamoto.
Since posting its biggest loss since 1971 in March, Matsushita has announced 8,000 job cuts (3 percent of its work force) in Japan alone and the closure of 30 plants worldwide. Overseas job cuts figures have not been released.
