Fujitsu Hitachi Plasma to Stop Operating 2nd PDP Plant

Sept 18, 2007 18:47 Mami Akasaka, Tech-On!

Fujitsu Hitachi Plasma Display Ltd. (FHP) will concentrate PDP production to Third Plant and stop the operation of Second Plant at its Miyazaki Works, it was revealed in a press conference Hitachi Ltd. held to announce revision of its earnings forecasts for the April to September 2007 term.

Its Second Plant, which produces 37-, 42-, 55- and 60-inch PDPs and its Third Plant, which specializes in the manufacturing of 42- and 50-inch PDPs, are currently operating at the Miyazaki Works. The Second Plant is an old facility, which had already been operating when FHP was formed, while the Third Plant is a new facility, which started full-scale operation in late 2006.

With a view to concentrating production to a highly efficient manufacturing facility, FHP will stop manufacturing PDPs at the Second Plant in late October 2007.

Hitachi plans shipments of 2.5 million PDP TVs for fiscal 2008 (April 2008 to March 2009), but "the Third Plant is well capable" of supplying as many PDPs as required to meet this goal, according to the PR Department of Hitachi. While planning to manufacture models produced at the Second Plant thus far at the Third Plant as well, FHP will consider terminating the production of 37-inch and some other models, which tend to lose share battles against LCD TVs, said FHP.

In accordance with Second Plant's production halt, Hitachi logs about 15 billion yen loss due to impairment. In line with this, Hitachi has lowered its net income estimate for the April to September 2007 term by 10 billion yen, but maintained its consolidated sales estimate of 4.95 trillion yen (3.8% year-on-year growth) and an operating income estimate of 90 billion yen (a 354.5% increase). Hitachi now expects a net loss of 35 billion yen.

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