Panasonic to close UK production of TVs and STBs

net1

The combination of disappearing margins and lower production costs in Eastern Europe is hitting workers in South Wales. Nearly 600 jobs are under threat at Cardiff's Panasonic factory where production of TVs and set top boxes is to stop at the end of year.

The Japanese company - one of Wales' longest-serving inward investors - said the decision had been taken because of competition abroad. Sources suggest that production will transfer to the Czech Republic.

Junro Nakamura, MD of Matsushita Electric (UK) said "Unfortunately, in the light of significant trading losses resulting from increasing competition and price erosion, we are proposing to cease our TV and set-top box manufacturing operations here in Cardiff by the end of 2004."

There was shock and disappointment in the Welsh capital. "These are the types of jobs that are much needed in Wales and to lose 600 in one fell swoop demonstrates the grave situation the economy here finds itself in." said Welsh Assembly Member for Cardiff Central, Jenny Randerson.

Some 405 workers at the plant in Pentwyn will be kept on to continue working on research and development and the production of microwave oven and notebook computer operations.