Panasonic is shifting production from the USA to Asia

Because of the economic slowdown in the USA, Panasonic is closing its plant at Berea in Richmond, Virginia and shifting to Asia. This will result into job loss of 51 employees in the Panasonic Berea plant. On Thursday, the employees learned that their employment will be terminated on September 30. The Berea plant of Panasonic opened in 1996. It makes motors for small household appliances such as vacuum cleaner, computer ventilating systems and so on. During its peak period, the company used to employ 300 people. Richmond Register reports:

Tom McCay, Berea’s economic development director, said the city had been informed of the closing, but had been asked to referred all inquiries to Panasonic’s corporate office.

The closure will mean a monthly loss of approximately $3,000 from the Berea’s payroll tax, according to city Finance Director Carol Richmond.

In 2007, the city council raised the property tax rate from 3 to 10 cents per $100 of evaluation and levied a 3 percent tax on restaurant receipts and a 6 percent tax on most insurance premiums, except health insurance.

Panasonic has another plant in Danville which will remain opened.

Berea is just another tragic story of the USA economic slowdown. Because of the economic slow down job losses are increasing day by day in the USA. In the last five months including May, the rate of job loss has risen to 5.5%, the highest in the last three years.

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