Sanyo gauges plant sale deal

November 04, 2013 | 14:45

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Japanese-owned Sanyo OPT Vietnam is putting its plant in the northern province of Bac Giang on sale.

Sanyo expressed deep regret at being forced into closing its Bac Giang plantPhoto: Kieu Linh

According to Nguyen Anh Quyen, head of the Bac Giang Industrial Zone Authority, Sanyo OPT Vietnam has officially halted its operations since early this year due to losses, and was negotiating a handover to a new investor.

Another source from the authority, who declined to be named, told VIR the firm was negotiating to sell its assets to a subsidiary of Panasonic, Sanyo OPT Global’s largest shareholder.

Sanyo’s factory opened in 2009 at Quang Chau Industrial Park and produces infra-red detectors. It officially stopped production on January 31 this year, reporting poor operations. Roughly 4,000 workers, mostly female, were put out of work.

According to Quyen, Sanyo was the province’s largest investor and was a good, law-abiding company. The company attached special importance to building a business culture and looked after its employees. Its workforce peaked at 7,000.

In its notice suspending operations that was sent to authorities, general director Hiroyuki Mita said “We very much regret our inability to continue operations in Bac Giang. We have made this decision for reasons that are beyond our control.”

Quyen praised Sanyo’s behaviour despite the shutdown. “Sanyo acted graciously, particularly in supporting the interests of its workers. We will provide as much support as possible in their transfer of the business,” Quyen said.

Under Vietnamese law, a project shall have 12 months to be transferred to another entity since the date of stopping operation. The government can extend the hand-over period to 24 months maximum.

By By Kieu Linh

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