Osaka-based Matsushita, operating under the brand name of Panasonic, announced on October 4 plans to expand its plasma panel production capacity by 10% at its new No. 2 plant in Amagasaki of western Japan.

Instead of six million 42-inch panels as originally planned, Matsushita aims to boost its annual capacity to 6.6 million units in 2008, so as to meet surging market demand. Currently Matsushita's operates at an annual capacity of less than 2.2 million units at its Amagasaki No. 2 plant.

Meanwhile, Matsushita is scheduled to start construction on a third plasma panel plant in Amagasaki in November, which is expected to enable the company to produce 23 million plasma panels at full capacity per year. The construction is slated for completion by 2009.