Panasonic plans LCD panel output at new plant

Panasonic Corp. (PC, 6752.TO) is expected to start mass-producing liquid-crystal-display panels in early April at its newly built plant in Himeji, Hyogo Prefecture, three months ahead of schedule, amid rapidly growing demand for flat-screen TVs, industry sources Sunday, Kyodo reported.

The major electronics company, which already began trial production at the plant in western Japan, aims to raise the manufacturing capacity there in July to an annualized 4.8 million panels for 32-inch TVs.

Panasonic began constructing the plant in July 2008 with the initial goal of starting commercial operations in January this year.

But the economic downturn that eroded the company's financial strength forced Panasonic to delay the plan by six months. It was reconsidered due to a recovery in its profitability and surging demand for flat-screen TVs on a global scale.

The latest move will enable the company to produce 12 million LCD panels a year in July, including 7.2 million panels at a plant in Mobara, Chiba Prefecture.

With a total investment of 235 billion yen by fiscal 2012, Panasonic intends to build up the Himeji plant, depending on market demand, with plans to achieve full production capacity of 15 million panels a year.