Pioneer to Invest in Plasma Production Capacity

Pioneer will acquire 10 hectares of land in the Minami-Alps city in the Yamanashi prefecture to build a plasma TV plant. The company plans to capture 10% of the global 40″+ plasma TV market by 2008; Pioneer’s share was 6% in 2005. Initial guesses to the amount of investment for the new plant is more than 30 billion yen (about US$262 million) with mass production slated for March 2008 with an initial capacity of 300,000 plasma TVs per year. Final capacity might top 1 million units annually according to the Nihon Keizai Shimbun. Pioneer has been struggling recently and the massive investment requirements to capture just 10% of the 40″+ plasma TV market might require that the company hold hands with another.

The Yamanashi Prefecture is a good location because it is located adjacent to one of the largest TV markets in Japan: Tokyo Metro. With short distances to cover, distribution times and costs will be minimized while its reach to a dense consumer base is maximized.

Source: Forbes

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