AN audio-making company under the Japan-based Panasonic group is set to shut down its operations in Johor in March next year, affecting some 880 workers.

Malaysiakini reported today that the unit, Panasonic AVC Networks Johor Malaysia Sdn Bhd (PAVCJM), will discontinue two production lines in its plant in Pasir Gudang.

The news portal quoted PAVCJM managing director Hidekazu Ennouji as saying in an email to the staff the company will discontinue the production of audio products by the end of March 2024.

The production line for those products will be transferred to its sister company Panasonic AVC Networks Kuala Lumpur Malaysia Sdn Bhd (PAVCKM) in Section 21, Shah Alam, starting in October.

“This is to strengthen the competitiveness of products and streamline production facilities in Malaysia,” he reportedly said.

Malaysiakini reported last week the manufacturing line at three companies under the Panasonic group in Malaysia will be shut down soon, affecting more than 1,000 workers.

In his email, Ennouji also confirmed the cessation of digital camcorders production by the end of September next year and will be consolidating its production to Panasonic AVC Networks Xiamen (PAVCX) in China.

“This is to improve production efficiency globally. The transfer of camcorder products to PAVCX will start in September 2024.

“Approximately 320 employees will be affected by the end of December next year,” he added.

He said affected workers will be offered compensation, which includes extra retirement benefits and other payments in accordance with the local laws and regulations.

He added that PAVCJM was ensuring that all affected employees are “well-supported during this transition, including assisting with job placements”.

Meanwhile, PAVCJM asserted that Malaysia remains a regional and important hub for Panasonic.

“The Panasonic group in Malaysia will continue to have approximately 17,000 employees across various business domains, including high-value manufacturing, research and development as well as headquarters operation.

“We will continue to invest in Malaysia to support our growth strategies in the high-value supply chain and continue contributing to the communities in Malaysia and beyond,” it said. – June 9, 2023.