PANASONIC ANNOUNCED THAT IT WILL LIQUIDATE ITS LCD PANEL SUBSIDIARY

Japanese electronics giant Matsushita Holdings said it will liquidate its subsidiary that makes liquid crystal displays (LCD) to avoid a long-term strain on profitability and strengthen the company's transition to making batteries for electric vehicles, Nikkei Asia reported.

Panasonic Liquid Crystal Display, based in Himeji near the western Japanese city of Osaka, makes liquid crystal displays for automotive and industrial applications. The factory will be acquired directly by the parent company, and Panasonic plans to convert it into a production base for batteries for electric vehicles.

This change in strategy is in line with Panasonic's ambition to capitalize on the growing demand for electric vehicles, which is expected to increase sharply in the coming years. The move reflects the company's strategic vision to invest in areas with higher growth potential and profitability.

Panasonic is a major player in electric car batteries, supplying batteries to major automakers around the world. The liquidation of the subsidiary LCD will allow the company to further strengthen its position in this fast-growing segment.

The report pointed out that Panasonic's decision to focus on manufacturing batteries for electric vehicles is a strategic one as the global automotive industry gradually shifts to electric vehicles. The company is now well positioned to leverage its technical know-how and experience in battery production for the transition to sustainable mobility.

With the liquidation process underway, Panasonic is expected to accelerate the expansion of its electric vehicle battery production capacity, consolidating its leading position in the global electric vehicle market.