SHENZHEN: Matsushita Electric Industrial Co Ltd, the world's largest maker of consumer electronics, will double its manufacturing capacity of ventilation fan factories in China to further strengthen its lead in the global ventilation business.

The Osaka-based company, which makes Panasonic brand products, has relocated and expanded Panasonic Ecology Systems Guangdong (PESGD) to a two-fold increased production capacity to approximately 4 million units a year.

To further solidify factory operations, PESGD will merge with Beijing Matsushita Seiko Co Ltd, a maker of ventilators and fan-coil units, as its subsidiary on April 2005.

"The merger will help Matsushita step up production efficiency and speed up products development in China under a unified business strategy, said Akihiro Moribayashi, manager of public relations of Matsushita Ecology Systems Co Ltd.

By 2005, PESGD is expected to achieve an increase in world market share of its ventilation-related products from the current 11 per cent to 15 per cent.

And 85 per cent of PESGD's products will be exported while 15 per cent will be sold in the domestic market.

Sales revenue of PESGD, which has realized 480 million yuan(US$58.04 million) in 2003, will have a robust growth to 680 million yuan (US$82.22 million) this year and 800 million yuan (US$96.73 million) by 2006.

As a manufacturing subsidiary of Matsushita's environment-related unit, Matsushita Ecology Systems Co Ltd, PESGD has invested HK$91.8 million (US$11.8 million) and started operations last month in the city of Shunde, South China's Guangdong Province.

Ventilation products of PESGD include ceiling fans, box fans, cabinet fans, hand dryers, range hoods and air purifiers.

Meanwhile, PESGD has installed 70 experts at Matsushita's design and development centre of ventilation products in China.

In line with another four R&D facilities in the country targeting a variety of products, the launch of R&D centre in Shunde is just a starting point, said Moribayashi.

"We will continue to reinforce testing equipment, R&D environment and local engineers to make our products tailored to Chinese consumers," Moribayashi said.

Matsushita Electric Industrial Co Ltdrecorded consolidated sales of US$71.92 billion for the financial year that ended on March 31, 2004.

Editor: Olivia