Sony to close Indonesian plant

Sony is a leader among Japan's consumer electronics makers

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TOKYO, Japan (CNN) -- Japanese consumer electronics leader Sony Corp has confirmed it will close an audio equipment plant in Indonesia by March, cutting around 1,000 jobs.

The Indonesian plant has been operating since 1992.

Sony will transfer its product line, which includes stereo components such as mini hi-fi systems, to Malaysia and elsewhere, according to the Nihon Keizai Shimbun.

Shares in Sony, one of Japan's biggest exporters, are down 1.3 percent to 5,320 yen near midday Tuesday. That is in line with the broader market, measured by the Nikkei 225, which is down about 1.27 percent.

The decision is part of Sony's plans to restructure its Southeast Asian operations, in line with a worldwide reorganization of its audio equipment production.

Competition from China

Sony spokesman Gerald Cavanagh told Reuters on Tuesday that the move was also partially aimed at raising efficiencies to respond to tough competition from China.

"The overall consumer electronics market is very competitive at the moment, so certainly under those very competitive conditions we've had to take another look at how we organize audio production," Cavanagh said.

According to the Nihon Keizai business daily, Sony's pullout from Indonesia is the first by a major Japanese electronics manufacturer.

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