May 27 (Reuters) - JVC Kenwood Holdings Inc will stop domestic camcorder production and downsize an LCD television factory in Thailand under a restructuring plan to be announced Friday, the Nikkei reported.
The restructuring will affect about 10 percent of its workforce, or more than 1,000 employees, the business daily said.
JVC Kenwood, which was formed in October 2008 through a merger between Victor Co of Japan and Kenwood Corp, has been hit by a slump in its audiovisual equipment business.
The company's Yokosuka plant in Kanagawa Prefecture will stop making camcorders as early as this year, but continue output of other devices, such as projectors, the business daily said.
'A factory in Malaysia will take over production for the Japanese market,' the daily reported.
JVC will also spin off its Thai TV plant, halving its 600-strong workforce there, Nikkei said.
'JVC Kenwood has decided to sell the Yokohama birthplace of JVC, which is currently home to its headquarters and a factory.'
Other assets in Japan and abroad will be shed as well to obtain cash for the restructuring, Nikkei added.
(Reporting by Mansi Dutta in Bangalore ;Editing by Vyas Mohan) Keywords: JVCKENWOOD/ (mansi.dutta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mansi.dutta.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The restructuring will affect about 10 percent of its workforce, or more than 1,000 employees, the business daily said.
JVC Kenwood, which was formed in October 2008 through a merger between Victor Co of Japan and Kenwood Corp, has been hit by a slump in its audiovisual equipment business.
The company's Yokosuka plant in Kanagawa Prefecture will stop making camcorders as early as this year, but continue output of other devices, such as projectors, the business daily said.
'A factory in Malaysia will take over production for the Japanese market,' the daily reported.
JVC will also spin off its Thai TV plant, halving its 600-strong workforce there, Nikkei said.
'JVC Kenwood has decided to sell the Yokohama birthplace of JVC, which is currently home to its headquarters and a factory.'
Other assets in Japan and abroad will be shed as well to obtain cash for the restructuring, Nikkei added.
(Reporting by Mansi Dutta in Bangalore ;Editing by Vyas Mohan) Keywords: JVCKENWOOD/ (mansi.dutta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mansi.dutta.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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