Mitsubishi Elec To End Computer Motherboard Production In UK
Wednesday, January 20, 1999
TOKYO (Nikkei)--Mitsubishi Electric Corp. (6503) will stop making motherboards for personal computers in the U.K., shutting down motherboard production lines at local subsidiary Apricot Computer Ltd. by the end of March, company officials said Wednesday. The firm will contract out production of the key component, which houses the microprocessor, system memory and other chips.
Mitsubishi Electric plans to dismiss 200 local employees, about 40% of the subsidiary's payroll. Apricot has remained in the red since it was acquired by the Japanese company in 1990. Mitsubishi Electric hopes a drastic restructuring will end the chronic losses.
Apricot annually fabricates motherboards for more than 100,000 computers, including OEM output, and supplies motherboards for some of the Apricot brand desktop models Mitsubishi Electric markets in Japan. Apricot has been unable to compete on price against Taiwanese and other makers, however.
|
