Japan's Matsushita Electric Company said it will stop production at its Malaysian washing machine and refrigerator plant from October, with the loss of 300 jobs.

It said the decision to close the Bangi plant, south of Kuala Lumpur, was made after taking into account accumulated losses incurred by the business and an unfavourable forecast for growth and profitability.

Matsushita said its board had approved the implementation of a scheme for the termination of the services of staff based at the Bangi Plant, which would affect about 300 employees.

More competitive position

The closure of the plant would also mean that Matsushita would stop selling washing machines and refrigerators in the country.

Matsushita said associated company, Panasonic Malaysia Sdn Bhd, would continue to sell Panasonic-brand washing machines and refrigerators in Malaysia by sourcing from other countries.

It said it was confident its strategy would put the company in a stronger and more competitive position, while maximizing shareholders' returns.