Panasonic shuffles out of plasma business

Troubled TV maker Panasonic is likely to prune off its plasma business over the next three years.

According to the Nikkei newspaper, the outfit is trying to come up with new ways to save cash and its plasma television seems to be a starter.

Panasonic has been trying to sell off the family silver and has been seen at the multinational equivalent of car boot sales in a bid to strengthen its bottom line.

Panasonic’s TV business, which generated sales of $10.5 billion during its peak in 2009 and 2010, will earn less than half of that amount in 2015 and 2016.

Panasonic is refusing to comment other than saying that it is considering a number of options regarding its TV business.

The compay had announced that it would end plasma TV panel production at its main plant in Amagaskai in western Japan around fiscal year 2014.

According to the Nikkei the company had already written off the value of production equipment there.

New development of plasma TVs has been halted and Panasonic has decided that making plasma and LCD models would be inefficient. In Japan the flat TV market is shrinking, the Nikkei said.

There have been comments that plasma is dead in the water before. Panasonic is said to be working on OLED with Sony and plans to outsource manufacturing to keep costs down.