Hitachi to delay decision on new plasma plant

Tokyo, Feb 3: Japan's Hitachi Ltd. will postpone a decision onbuilding a new factory for television-use plasma panels by about sixmonths due to fierce competition and falling prices, a financial dailyreported on Saturday.

The Nikkei said the electronics maker had initially planned todecide by the end of March, the location and time frame for the newplant, which would be the third for its subsidiary, Fujitsu HitachiPlasma Display Ltd.

Hitachi now plans to make the decision as early as autumn afterevaluating the trend of the spring shopping season, the Nikkei added.

The company will increase output at other factories untilconstruction of the new plant is finalised. It also plans to double itsannual panel production capacity to 4 million panels in terms of42-inch products by autumn.

Earlier this week, rival Pioneer Corp. said it would also postpone the planned construction of a new plasma display factory.

Reuters>