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Panasonic looking to sell factory in China for ¥50B

Japanese electronics manufacturer Panasonic Corp. is aiming to sell its security camera manufacturing plant in Suzhou, China, for around ¥?50 billion, the Nikkei Asian Review reported March 10.

The first round of bidding is reportedly expected to close in early April, with investment funds such as Carlyle Group LP, Permira Holdings Ltd. and CVC Capital Partners Ltd. among the potential buyers. However, Panasonic may drop sale talks if it is not satisfied with the bids.

The company is looking to off-load the Chinese factory to help reduce expenses from its security camera business, which has been struggling outside Japan, the report said. Panasonic currently offers its own internet-connected cameras with the security systems it sells but plans to start using cameras from outside sources. That could possibly result in a further deal with the buyer of the factory.

In addition, proceeds from selling the manufacturing facility could be used for acquisitions related to corporate systems, or put toward Panasonic's other businesses such as automotive batteries, according to the Nikkei.

The company also will reportedly consider selling its Japanese security camera plant, in the country's Saga Prefecture.

As of March 9, US$1 was equivalent to ¥106.93.