By Matthew Henry
YOKOHAMA: JVC will close its UK-based television manufacturing operation in July and will source products for its European flat panel displays from an Eastern European factory, the company announced at the weekend.
Established in 1987, the JMUK plant in East Killbride makes cathode ray tube and LCD televisions for the UK and other European markets.
The ₤10 million ($AU21 million) operation will close due to margin pressures in the display market, JVC said.
“The rapid shift…from CRTs to flat panel displays (FPDs) in the colour television market over the past several years led to a drastic fall in FPD product prices,” said the company in a statement.
“JVC was forced to conclude that it would be difficult to continue production within the UK due to the resulting impact on profits. Other factors behind the decision to halt production include the fall to about 25 per cent of JMUK-produced products sold within the UK, and development of production infrastructure for electronics products in Eastern Europe.”
JVC will replace the plant with a consignment production agreement with a factory in Eastern Europe.
The plant’s closure is expected to result in the loss of hundreds of jobs.
Representatives for JVC’s Australian operation were unavailable for comment when contacted today.