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Sony to close factory in France

(Agencies)
Updated: 2008-12-05 10:45

TOKYO -- Sony Corp. said Friday it would shut down its factory making videotapes in France due to slumping global demand.

Sony Corp. shareholders arrive for the annual shareholders meeting at a Tokyo hotel Thursday, June 21, 2007. Sony Corp. said Friday it would shut down its factory making videotapes in France due to slumping global demand. [Agencies]

The fate of the factory's 320 workers remained unclear, but Sony spokesman Shusuke Kanai said the company was doing its utmost to help them after the closure.

"Global demand for videotapes has been declining as people are switching from videotapes to discs," Kanai said. Sony aims to close the factory, located south of Bordeaux, by the end of March next year.

Sony makes about 80 percent of its sales overseas.

The Japanese electronics giant has slashed its full-year earnings projection due to weak consumer demand and a stronger yen. For the fiscal year through March 2009, Sony is expecting a 150 billion yen ($1.6 billion) profit, down 59 percent from the previous year.