1,550 jobs may be on the line

Some 1,550 jobs could be on the line as Japan's Panasonic is set to shut a plant next month while the fate of those working for Germany's Qimonda is uncertain.

Qimonda's factory in Batu Berendam, Malacca, employs 1,100 people, its website said. Repeated calls to the company, Qimonda (Melaka) Sdn Bhd, were unanswered.

Qimonda, which makes memory chips, used mainly in PCs and mobile phones, is now undergoing bankruptcy proceedings.

The company has been battling for survival over the past few months. It has been reported that it needs some 300 million (RM1.4 billion) to survive.

As for Panasonic Malaysia Sdn Bhd, which makes household appliances, the company has laid off 450 workers at its cathode-ray tube (CRT) plant in Batu Berendam.
A company official told Business Times that the plant, operating since 1990, will be shut down on February 27 due to shrinking demand for bulkier CRT television.

Panasonic compensated the affected workers, mostly machine operators, with generous gratuity payments, a three-month paid leave and payments for outstanding annual leave.

The company also helped them to find new jobs in hypermarkets and departmental stores, the official said.

The official said the CRT plant may be sold pending a decision by its parent company but no other factories will close in Malaysia.

The Nikkei business daily reported that Panasonic Corp, which may post a net loss of about 100 billion yen (100 yen = RM4.04) on restructuring charges and weak demand for consumer electronics, plans to close two of its three plants that make electronics parts in Malaysia.

Panasonic has invested some RM8 billion in Malaysia in the last 32 years. It operates 20 plants across the country and produces 95 products.

(Business Times)