Matsushita Electric Industrial Co. said Monday it plans to produce 3.4 trillion yen worth of products at its overseas plants in fiscal 2003, a 1.7-fold increase over fiscal 2000 ending March 31.
Matsushita, known for its Panasonic brand of household electronics, will also promote production of mobile phones and digital televisions in China and Eastern Europe, the company said.
The planned output increase is estimated to raise the ratio of overseas production to nearly 40 percent of Matsushita's total production, up from around 30 percent at present.
As Matsushita will also restructure overseas operations, it expects its overseas profit ratio to rise to 5 percent from 1 percent, Managing Director Yukio Shotoku said.
In another move related to overseas operations, Matsushita said it will establish a wholly owned new sales headquarters in Dubai to consolidate its sales activities in the Middle East region as well as in East African markets.
Panasonic Marketing Middle East FZE, which is to begin operations April 1, will be capitalized at 4 million dirhams (about $1 million) and will have 36 employees, the electronics giant said.
The new headquarters in the United Arab Emirates will absorb the current representative office and a sales company, Panasonic Gulf FZE, both located in Dubai, to make speedier management decisions for the region, Matsushita said.
Under the headquarters, the sales company will continue its operation of re-exporting products to neighboring countries where there are no Matsushita sales agents, it said.
Marketing functions, including sales, procurement and payments for the Middle East and neighboring areas are currently being carried out in Japan; they will be transferred to the new headquarters by April 2003, the company said.