DECEMBER 5, 2006 - Posted at 7:25 a.m. CST
FORREST CITY, AR - Growing popularity of flat-screen televisions has led Sanyo Manufacturing Corporation to lay off 300 employees at its Forrest City plant. The factory produces cathode ray televisions. The plant has 650 workers.
The layoffs are effective in February.
Sanyo says that prices are falling and demand is up for liquid crystal display and plasma display televisions. As a result, demand is falling for cathode ray TVs.
In fiscal 2004, The Forrest City plant made 1.5 million tube televisions. In fiscal 2006, the plant is projected to make 1.2 million of the TVs. Sanyo says it is expecting just 283,000 orders next year.
The drop in demand is causing Sanyo to reduce its five assembly lines at the Forrest City plant to just one.