Panasonic intends to close two LED factories in Japan by late September 2015 to raise the company’s profitability, reported Japanese media Kyodo News.

To improve its profitability, Panasonic Lighting System will be closing two LED factories separately located in Hirakata, Osaka Prefecture and Yawata, Kyoto Prefecture. The two factories LED production and 250 employees will be relocated to factories in Iga, Mie Prefecture and Tamba, Hyōgo Prefecture.

Panasonic booth at CES 2015. (Photo Courtesy of Panasonic)

After shutting down the Kyoto and Hirakata plants, Panasonic plans to spend 1 billion Japanese Yen (US $10 million) on Iga and Tamba factory facilities to raise LED production capacity by 30%.

The Hirakata and Kyoto factories were respectively established in 1967 and 1990. The two plants have mainly been producing residential and commercial luminaires. Panasonic intends to sell the two factories following the close down.

Earlier, Panasonic decided to close down its LED factory in Indonesia by late October, and move its overseas LED production capacity back to Japan. The company is promoting adjustments in its production capacity.

The Japanese company is striving to improve six of its businesses sales, and is targeting a sales of above 30 billion Japanese Yen. Company restructures will cover lighting, air conditioning, and the residential solutions businesses.

Panasonic’s stock value climbed up 9.0 Japanese Yen or 0.68% to 1,342 Japanese Yen at one point during its trading period on Monday.