Panasonic is building a home appliances factory in China

Panasonic is building a home appliances factory in China

Japan’s Panasonic plans to build a new home appliances factory in China, according to Nikkei. It will be the company’s first venture in China in 16 years.

Panasonic’s move is in line with prevailing industry trends. The US-China trade war, which led to higher tariffs, forced many manufacturers to withdraw from China.

What do the Japanese rely on? The middle class is growing rapidly in China and is beginning to look for high-end home appliances at the expense of local consumer demand.

Each year, Panasonic sells home appliances worth about $ 1.84 billion in China. The company manufactures devices in Shanghai, Hangzhou and Xiamen, selling them through large local stores and online.

Panasonic is under increasing pressure from local manufacturers, especially Xiaomi, which seduces cheap buyers at a fairly high level of quality. This encourages the Japanese company to act more aggressively.

The new plant, which Panasonic plans to build in Zhejiang Province, will produce kitchen appliances with an Internet connection and multiple sensors for convenient remote control of the cooking process.

Investments in the project are estimated at $ 41 million. The estimated annual revenue of the company, expected to be operational in 2021, will be approximately $ 280 million. The products of the new factory will be sold not only in the domestic market in China but also in the Asian region.

Panasonic is building a home appliances factory in China