JDI Extends Halt to Hakusan Plant Operations

Economy

Tokyo, Sept. 13 (Jiji Press)--Japan Display Inc. <6740> will extend the suspension of operations at its mainstay plant in Hakusan, Ishikawa Prefecture, central Japan, it was learned Friday.

The plant, which produces display panels for smartphones, was originally planned to be halted from July to the end of September due to declining orders. The period was extended, reflecting the trend of orders from its largest customer, Apple Inc., informed sources said.

The Japanese display panel maker is in discussions over future business management with a consortium of Chinese and Hong Kong companies, which will provide its first round of financial aid to the struggling company in October. A decision on when to restart the plant will be reached after the aid has been delivered.

JDI announced the suspension of the key plant as part of a review of its production regime in June. The company also announced the launch of a voluntary redundancy program to cut 1,200 jobs, which it says has been conducted according to schedule.

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