Home News Panasonic invested about 10 billion yen in changing its production line from China to Japan

Panasonic invested about 10 billion yen in changing its production line from China to Japan

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Panasonic invested about 10 billion yen in changing its production line from China to Japan

According to the “Nihon Keizai Shimbun”, Panasonic Holdings will move the production line of mid-to-high-end household air conditioners from China to Japan by 2024.


▲ Source: Panasonic

According to reports, about 90% of the Panasonic air conditioners sold in Japan, except for the top models, are produced at Panasonic’s Guangzhou factory. But from 2023, Panasonic’s high-end air conditioners will all be produced in Japan. Starting in 2024, Panasonic’s mid-range air conditioners will also be produced in places such as the Kusatsu Plant in Shiga Prefecture, Japan. This means that about 40% of the production capacity of Panasonic air conditioners has returned to Japan.


▲ Source: Panasonic

According to reports, Panasonic is in order to adapt to the uncertainty of the supply chain brought about by trade frictions, and also hopes to promote the process of local production and local sales to improve production and operation efficiency.


▲ Source: Panasonic

The report pointed out that Panasonic invested about 10 billion yen in changing the place of production. Panasonic will use methods such as the generalization of parts and robot production to reduce costs. Panasonic said that after returning to Japan’s local production, the waiting period from ordering to delivery will be shortened to one-tenth of the current one. Panasonic predicts that returning to local production in Japan can bring about an additional benefit of about 4 billion yen per year.


▲ Source: Xiaomi

Masaharu Doura, president of Panasonic Air Conditioning, who is responsible for the R&D and production of air conditioners, said that in order to provide products close to the market, it is necessary to return to domestic production in Japan. It was previously reported that Panasonic Air Conditioning and Xiaomi have reached strategic cooperation. The two parties will not only join hands in the field of product OEM manufacturing but also share resources in technology research and development.