On June 24th, Gizcoupon reported that, as reported by the “Nikkei Economic News,” Panasonic Corporation is planning to relocate the production lines for its mid-to-high-end household air conditioners from China back to Japan by 2024.
Currently, about 90% of Panasonic air conditioners sold in Japan (excluding top-tier models) are made in China factories. However, starting in 2023, all high-end air conditioners will be manufactured in Japan. By 2024, it will relocate production of mid-range air conditioners to its factories in Shiga Prefecture, Japan, including Yasu City. This means that around 40% of Panasonic air conditioner production capacity will return to Japan.
As we know, Panasonic took this step to adapt to the uncertainties in the supply chain caused by trade frictions. Additionally, it aims to promote the concept of local production for local consumption. Thereby enhancing production and operational efficiency.
The report indicates that Panasonic will invest approximately 10 billion yen (around $70 million) for this relocation. It plans to reduce costs through measures such as standardizing components and implementing robotic production. After shifting production back to Japan, Panasonic expects to shorten the order-to-delivery waiting time to one-tenth of the current duration. The company predicts that returning production to Japan will result in approximately around $28 million in additional benefits annually.
Masaharu Doi, President of Panasonic Air Conditioning, responsible for air conditioner development and production, stated that it is necessary to return production to Japan in order to provide products close to the market. Gizcoupon previously reported that Panasonic Air Conditioning had entered into a strategic partnership with Xiaomi. The two companies will not only collaborate in the field of product manufacturing but also share resources in technological research and development.
