Pioneer confirms planning new plasma TV line, says manufacturing in Japan only
Pioneer Corp said it may put a new line of plasma televisions into production from 2008 but also sought to clarify media reports on the proposal, specifically concerning where the project will be located.
Pioneer spokeswoman Ema Suzuki confirmed that the company may launch a new plasma TV line, but added that comments made by Pioneer President Kaneo Ito in an interview with the Nihon Keizahi Shimbun had been misunderstood. The newspaper said Pioneer will begin work early next year on the new line but Suzuki added: 'There was a misunderstanding' concerning the line's location.
'President Ito said that given that the estimated global market for plasma display TVs will grow to about 8 mln units in 2008, we have to establish a new line so as to keep the market share of about 20 pct,' she said.
But she added that contrary to the Nikkei report, which mentioned the possibility of locating operations near consumer markets, Pioneer will only manufacture the sets in Japan.
'We are planning to produce plasma displays only in Japan, although some of assembling is being done at our overseas facilities,' she said.
Suzuki also confirmed that Pioneer will set up a project team to develop the new line early next year, with the process taking one or two years.
In the Nikkei interview, Ito said total investment for the production line has not yet been decided, but added that it would not exceed 100 bln yen.
He said the company is looking at an annual production capacity of 500,000 plasma sets, on construction costs of some 27 bln yen. The Nikkei said the new line would raise Pioneer's total annual plasma TV production capacity by 50 pct to some 1.6 mln units. Pioneer began operating a fourth plasma line at a plant in the Yamanashi Prefecture in eastern Japan in October, after it purchased NEC Corp's plasma TV business.
The plant, which is run by the company's subsidiary, Pioneer Display Products Corp, boosted its current total production capacity from 300,000 to 1.1 mln units.
