Hitachi stops making lcd tvs in Japan and the production of this subcontract. The decision is a result of the falling demand for tvs of the brand in Japan through increased competition. The tv branch has been writing five years of red figures.
The lcd-tv factory in the Gifu district of Japan, the last of Hitachi in Japan, will stop from October this year with the production of televisions and will concentrate on repairs and making components, according to The Wall Street Journal. Hitachi made in August the plans for the closure first announced, but now has the knot finally made.
The factory was responsible for the tv production in their own country. The production of tv-sets for the foreign market was already outsourced. JVC stopped earlier with the production of tvs, while Philips ‘ tv business, has to be found in a Chinese joint venture.
Hitachi stops with the domestic production of lcd tvs as a result of the declining demand for tvs of the brand. The brand has in their own country is difficult due to strong price competition from, among others, Panasonic and Sony, but also the Korean companies Samsung and LG. The recent abolition of subsidies for the purchase of energy efficient televisions had the effect that the growth in the sales of tv’s in Japan is halted.
The Japanese company is going to work now to shift from consumer electronics to electric power, railway systems and information technology. In those areas expected to Hitachi in the coming years, the necessary growth in the future.