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TOKYO — Japanese technology group Toshiba will shutter a Chinese plant in the northeastern city of Dalian — the company’s first production center in the country — at the end of this month as part of an ongoing business restructuring.
The plant, which employs roughly 650 people, makes industrial motors and broadcast transmitters. But the site found itself on the chopping block due to a steep drop in production.
The Dalian plant opened in 1991 as Toshiba’s first Chinese production center, when Bo Xilai — now serving a life sentence in prison for corruption — was deputy mayor. Bo rose to mayor in 1993, and built Dalian into a hub of Japanese manufacturers.
Toshiba was the leading figure among the Dalian-based companies, with its local head often serving as the chairman of the Japanese Chamber of Commerce and Industry.
The plant operator, Toshiba Dalian, says will initiate the liquidation process as soon as October. Capacity will be shifted to Vietnam and Japan.
Toshiba has other facilities in Dalian and elsewhere in China that produce railway components and elevators. Those locations will remain in operation.
The factory that will be shuttered had made a wide variety of products such as LCD televisions and medical devices.
The plant employed roughly 2,400 people at its peak around 2010, according to Toshiba. The company ended up terminating product lines at the plant as it reorganized.
Toshiba will also shut down a plant in Japan’s Saitama Prefecture, a year after it announced it would do so. The site started operations in 1965 as Toshiba’s first color TV plant, but the company ended domestic production of TVs in 2012.