Panasonic to increase air conditioner production in Japan

Panasonic plans to invest $70 million in its Kusatsu plant to increase air conditioner production. (Photo: Nikkei)

Panasonic said it will spend a total of 10 billion yen ($70 million) on new production lines at its plants, mainly in Kusatsu, Shiga Prefecture. Starting in fiscal 2023, the electronics giant will reallocate air conditioner production for the domestic market from China to Japan, raising the domestic production ratio from the current 10% to 40% by early fiscal 2024. At the Kusatsu plant, it will install automated assembly equipment to triple capacity.

As a first step, Panasonic will move production of high-end air conditioners and outdoor compressors back to Japan from Guangzhou, China. Mid-range models will also be brought back to Japan in fiscal 2024.

Panasonic estimates that by automating the inspection of finished machine operators and installing robots to assemble compressors, the time from production to delivery will be reduced by a quarter compared to the Guangzhou plant. The Guangzhou plant will use excess capacity to increase production to serve the Chinese market.

With this restructuring plan, Panasonic hopes to deliver air conditioners to the market faster, avoiding disruptions to the supply chain as occurred during the Covid-19 period and the semiconductor crisis.

Masaharu Michiura, president of Panasonic's air conditioning and ventilation equipment business, said they will be better able to respond to market fluctuations.

Earlier this month, the Kusatsu plant opened a research center to develop an air conditioner that uses natural refrigerants and a new air conditioning system that improves sleep quality.

Panasonic targets 290 billion yen in sales for its Japan appliances business, which includes air conditioning and ventilation and building air conditioning systems, in fiscal 2024, up 20% from fiscal 2022.

(According to Nikkei)

Panasonic air conditioners reduced by up to 3 million, all fees included at MediaMart. To meet the demand for air conditioners that is "hotter" than ever this summer, the MediaMart electronics supermarket system cooperates with the Panasonic brand to launch the promotion program "Panasonic air conditioners reduced by up to 3 million, all fees included at MediaMart".

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