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Sony to Close Indonesian Audio Plant

Japanese electronic and entertainment giant Sony Corp. will close its Indonesian audio-equipment plant in March and lay off all 1,000 workers, a company official said Tuesday.

“The move is part of Sony’s overall effort to reorganize global production,” said Sony spokeswoman Ayako Hashimoto.

The production at P.T. Sony Electronics Indonesia will be moved to Sony plants in Malaysia, Mexico, Japan, China and elsewhere, although details are still being worked out, she said.

The Indonesian plant in Jakarta produced stereos and other audio equipment valued at about 15 billion yen ($123 million) a year.

Since 1999, Sony has been restructuring its global operations to maximize profit. In March 1999, Sony had 70 factories worldwide, but that number has been trimmed to 54 as of April this year.

Japanese electronics makers have been under intense pressure to cut costs because of competition from Chinese and South Korean rivals that can use cheaper labor.

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