has announced that it will cease manufacturing production of 42-inch plasma panels at its Kagoshima plant in Japan by early 2009. Pioneer will instead buy its 42-inch plasma panels (and smaller sizes) from Matushita Electrical or Hitachi Ltd.
Pioneer has incurred heavy competition from LG Electronics and Matsushita after it purchased the Kagoshima plant from NEC and committed last year to purchase LCD panels from Sharp Corporation. Pioneer announced that it will focus its production capability on 50-inch and larger plasma panels that will be produced at other plant locations. Pioneer’s forecasted plasma panel production for this year is less than one-tenth of the production of Matushita for the year.
It was also reported that Pioneer is now courting NEC to repurchase the Kagoshima plant from it.
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