JVC To Liquidate U.S. VHS Videotape Unit

by News Editor
Published on Nov 13, 2003 12:00 AM



JVC, or Japan Victor Company, said Thursday it plans to liquidate the U.S. videotape manufacturing subsidiary, JVC Magnetics America Inc. Production stoppage is scheduled for the end of January 2004. 115 of the company's employees will be laid off.

The U.S. subsidiary, which makes VHS videotapes, has been mired in red ink because of the proliferation of DVDs. JVC currently holds about a 5 percent share of the global VHS videotape market. Since opening doors in 1986, JVC Magnetics America produced 10 million tapes a month for markets in North and South America, and Europe.

After the factory closes, JVC will produce VHS videotapes in Japan at Ibaraki Prefecture, and outsource as needed. JVC says that the liquidation of the U.S. firm will only have a minor effect on its earning.