Matsushita Group to Reorganize and Consolidate Industrial Equipment Business.OSAKA, Japan -- Matsushita Electric Industrial Co., Ltd. (MEI (NYSE NYSE See: New York Stock Exchange :MC)), best known for its Panasonic brand products, and Matsushita Electric Works Matshushita Electric Works (MEW), Ltd. can trace its beginnings to a company that was founded in 1918 by Konosuke Matsushita. Matshushita began making the flashlight components for bicyles, then progressed to making lighting fixtures. , Ltd. (MEW mew, miaow the vocal sound characteristic of domestic cats; in various languages it is spelled in 31 different ways, which include 'miaow', 'meow', 'myaus', 'mio', and 'mau'. See also vocalization. ) today announced a reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. of their industrial equipment businesses in line with the comprehensive collaboration efforts between the two companies. The plan, involving businesses mainly carried out by MEI's subsidiary, Matsushita Industrial Information Equipment Co., Ltd. (MIIE MIIE Member of the Institution of Incorporated Engineers ), aims to eliminate overlaps, further maximizing the group's growth potential in the industrial equipment business and the electrical supplies business in the commercial building market. The details of specific initiatives are as follows: 1. High-voltage power distribution equipment business and central monitoring and control system business to be integrated into MEW Matsushita's power distribution equipment business will be consolidated by transferring MIIE's high-voltage power distribution equipment (CUBICLE) business and MEW's low-voltage power distribution equipment business (i.e. power distribution boards) for commercial buildings into a new MEW subsidiary, which will be established in January, 2005. The consolidation will allow MEW to offer a complete range of power distribution equipment, a critical component in electrical supplies business, from high voltage The term high voltage characterizes electrical circuits, in which the voltage used is the cause of particular safety concerns and insulation requirements. High voltage is used in electrical power distribution, in cathode ray tubes, to generate X-rays and particle beams, to to low voltage Low voltage is an electrical engineering term that broadly identifies safety considerations of an electricity supply system based on the voltage used. While different definitions exist for the exact voltage range covered by "low voltage", the most commonly used ones include "mains . MIIE's central monitoring and control system business for facility management will be merged into MEW and placed under the management of its Security and Building Automation System (BAS BAS abbr. 1. Bachelor of Agricultural Science 2. Bachelor of Applied Science ) Business Promotion Department. 2. Information equipment and systems businesses to be integrated into Panasonic Communications Co., Ltd. Panasonic Communications Co., Ltd. (PCC PCC prothrombin complex concentrate. ) will take over MIIE's information equipment business, including such products as credit authorization terminals, barcode readers See bar code reader. and Radio Frequency Identification See RFID. (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) devices, as well as credit authorization terminal development and manufacturing functions currently carried out by Panasonic System Solutions Company (PSS See EPSS. ). At the same time, distribution systems business being done at Matsushita Industrial System Engineering Co., Ltd. (MISEC), a subsidiary of MIIE, will be transferred to a subsidiary of PCC. This reorganization will boost the group's capability of developing new products with future growth potential such as contactless IC card and wireless tag readers in the RFID field. It will also contribute to increasing synergy effects in the areas of the manufacturing, procuring and marketing operations. 3. MIIE's two subsidiaries to be transferred to Matsushita Welding Systems Co., Ltd. Two subsidiaries of MIIE, Kaga Matsushita Electric Co., Ltd. and MISEC, will be transferred to Matsushita Welding Systems Co., Ltd. Kaga Matsushita now serves as MIIE's manufacturing base for welding and CUBICLE related products, while MISEC offers public infrastructure businesses which include utility machinery and related services such as tunnel ventilation control systems and water and sewage treatment Sewage treatment Unit processes used to separate, modify, remove, and destroy objectionable, hazardous, and pathogenic substances carried by wastewater in solution or suspension in order to render the water fit and safe for intended uses. plants. As a result of those consolidations and transfers, MEI will eventually take over MIIE. The reorganization is scheduled to take place on April 1, 2005. Two transfers, however, will be carried out on March 31, 2005: MIIE's CUBICLE business to the new subsidiary of MEW and MIIE's central monitoring and control system business to MEW. About Matsushita Electric Industrial Co., Ltd. (Panasonic) Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand name, is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$71.92 billion for the fiscal year ended March 31, 2004. Matsushita's shares are listed on the Tokyo, Osaka, Nagoya, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (NYSE:MC), Euronext Amsterdam and Frankfurt stock exchanges Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. . For more information on the company and its Panasonic brand, visit the Matsushita website at http://www.panasonic.co.jp/global/top.html.
(Reference 1)
Businesses to be transferred
(Signing of the agreement is scheduled for early February 2005)
Businesses to be transferred Annual
------------------------------------------------ Transfer Sales*
Method (Billion
From To Yen)
----------------------------------------------------------------------
High-voltage power MEW
distribution equipment New subsidiary of Business Approx.
1 (CUBICLE) business Information Equipment transfer 3.4
(MIIE) & Wiring Products
Division Company
----------------------------------------------------------------------
MEW
Security and Building
Central monitoring and Automation System
2 control system business Business Promotion Business Approx.
(MIIE) Department, transfer 0.8
Information Equipment
& Wiring Products
Division Company
----------------------------------------------------------------------
MEW
Power distribution board New subsidiary of Business Approx.
3 business (MEW) Information Equipment division 13.2
& Wiring Products
Division Company
----------------------------------------------------------------------
Information equipment PCC Business Approx.
4 and systems business Devices & Components division 8.8
(MIIE) Company
----------------------------------------------------------------------
Credit authorization PCC Asset Approx.
5 terminal business (PSS) Devices & Components transfer 0.3
Company
----------------------------------------------------------------------
Distribution system Business Approx.
6 business PCC subsidiary transfer 0.7
(MISEC)
----------------------------------------------------------------------
7 Kaga Matsushita Electric Matsushita Welding Co., Business -
Co., Ltd. and MISEC Ltd. division
----------------------------------------------------------------------
* For the year ended March 2004.
** Business transfer schemes are subject to change according to future
discussions.
(Reference 2)
(GRAPHIC OF BUSINESS TRANSFER AT A GLANCE OMITTED)
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