Panasonic Corp on Tuesday announced that it would be shutting its television screen manufacturing division, making Sharp Corp as Japan’s main TV panel maker.
A spokesperson for Panasonic said that the group would be stopped the production of its TV screen manufacturing plant in Himeji, West Japan by the beginning of October 2015.
Despite the plant being in operation for over 5 years, the business has never generated a profit due to strong price competition from South Korea and Chinese competitors.
The decision comes as Panasonic has changed revenue targets from 10 trillion yen ($90.1 billion) for the year ended March 2019 instead to focus on profitability.
Its plant in Himeji will see its production of vehicle dashboard screens and medical screen products continue however output will be dropped to just one fourth of its current number of 810,000 units of 32-inch panels according to Panasonic.
Even now numerous television units which are sold under the Panasonic brand use panels which have been produced by rival companies such as South Korea’s LG Display Co Ltd.
The news was released on Tuesday morning by the group and by the end of the day Panasonic shares finished 3.6 percent up on the Tokyo Stock Exchange.