Toshiba ceases production plant in Dalian China, to relocate to Vietnam or Japan

PETALING JAYA (Sept 13): Japanese electronic giant Toshiba will be closing its 30-year-old production facility in Dalian, China, by the end of September this year, reported South China Morning Post (SCMP) on Sept 9.

In a separate report by Nikkei Asia, around 650 workers have lost their jobs following Toshiba’s exit from the modern port city of Liaodong Peninsula.

The liquidation process will begin in October, the report said, adding that Toshiba will be relocating its production facility to Vietnam or Japan.

Established in 1991, the Toshiba Dalian production plant is its first-ever production facility in China that mainly focuses on the production of industrial motors and broadcast transmitters. During its peak period, the production plant hired around 2,400 employees.

SCMP’s report, citing a professor of industrial economics at Nanjing University, said foreign electronic product brands are facing intense competition from Chinese brands as well as elevating production costs. Some of the other US and Japan brands are exiting China to other countries to reduce their production costs.

Another Japanese company, Oki Electric Industry Company (OKI), is also mulling to exit China and shift its printer production to Thailand “as part of its efforts to focus on competitive products amid the growing paperless trend”, said a report by Nippon.com.

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