Pentax delays camera launch after fire at plant

Posted on ZDNet News: Oct 24, 2007 9:12:00 AM

Pentax said it would delay the launch of its new digital camera after a fire at a lithium-ion battery plant run by Matsushita Electric Industrial's battery unit caused supply disruption. Production at Matsushita Battery Industrial's flagship factory in western Japan has been halted since a September 30 fire and it is unclear when it will be able to resume operations--a potential boost to rival battery makers including Sanyo Electric and Sony. Pentax planned to use a certain type of lithium-ion battery from Matsushita for its new digital camera, but the fire and ensuing production halt have made procurement difficult, forcing it to postpone the launch to February from November.

Matsushita's battery business was already hit hard in August when Nokia warned consumers that 46 million batteries made by Matsushita used in its mobile phones could overheat, and offered to replace them for free. Matsushita said on Wednesday it plans to boost output at other battery plants--one in Japan and the other in China--to make up for lost output, but it is also considering procuring lithium-ion batteries from outside to meet demand. Matsushita does not disclose its battery revenue, but its devices operations, a segment that includes batteries as well as microchips and other electronic components, posted 1.38 trillion yen ($12 billion) in sales in the year ended March 31, accounting for 15 percent of group revenue.

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