(Yicai) May 16 -- Panasonic Holdings, a Japanese electronics giant, will invest CNY1.2 billion (USD167 million) in China this year to accelerate its expansion, The Paper reported yesterday, citing the chief of the Chinese business.

The maker of television sets, headphones, and cameras will mainly use the funds to build manufacturing facilities, Ayumu Kinoshita, president of Panasonic China and Northeast Asia, said during the 2024 Kitchen and Bath China which kicked off yesterday. Panasonic CNA will expand its global business due to China’s efficiency and supply chain advantages, Kinoshita added.

The local arm has poured money into 18 factories since 2019, Kinoshita said, adding that one facility in Zhejiang province's Jiaxing, with an investment of CNY440 million (USD61 million), started operations last month.

Exports (excluding South Korea) make up at least a quarter of Panasonic CNA's revenue. The two biggest export segments are home appliances, accounting for 30 to 40 percent of the total, as well as building solutions such as heating and air conditioning, which have a 30 percent share.

The tech giant is promoting artificial intelligence. Panasonic has a 1,000-person company in northeastern China's Dalian to develop information technology and AI solutions, per Kinoshita. Moreover, it runs an information system firm in Shanghai, mainly to support the parent's operations.

China issued an action plan in March to encourage residents to replace and upgrade their old consumer goods. Panasonic welcomes the policy and cooperates with JD.Com in this regard, Kinoshita added.

Editor: Emmi Laine