Threat to 450 Panasonic jobs

ABOUT 450 jobs at the Panasonic mobile phones plant in Thatcham, Berkshire, were under threat today as its Japanese owners consider closing it down. The factory is owned by Matsushita Communication Industrial UK, an offshoot of electronics giant Matsushita Electric Industrial.

Talks are under way that could decide the future of the factory, established in 1988. The company denied that a decision has already been made.

Reports in Japan said production would be shifted to a new factory in the Czech Republic by April. However, Akira Kadota, a corporate communications officer with the parent company, said: 'We have not decided yet whether to close the mobile phone plant in the UK. Discussions are taking place between management and representatives of the employees.'

Earlier this year the group said it would close its Portsmouth sub-assembly and finishing plant and move production to the Czech facility, developed to service European markets. It also announced a new £20m research and development division at Thatcham. Since the Czech plant was decided on, mobile phone sales have fallen below expectations and technical hitches have hit the introduction of third-generation services.

Last week mobiles giant Nokia reported a 79% fall in third-quarter profits and warned that the market would shrink this year.