Matsushita to restart fire-hit battery plant in Nov

TOKYO, Oct 29 (Reuters) - Matsushita Electric Industrial Co Ltd (6752.T: Quote, Profile, Research, Stock Buzz) said on Monday that from Nov. 1 it would gradually resume operations at its flagship lithium-ion battery plant, which has been closed since a Sept. 30 fire. Damage to inventory, production equipment and buildings at the plant in western Japan is estimated to total 2 billion yen ($18 million), said Matsushita, which is aiming for an operating profit of 477 billion yen on sales of 8.78 trillion yen in the year to March.

It is still assessing the extent of damage from lost production.

Camera and medical equipment maker Pentax Corp 7750.T said on Monday it was considering seeking damages from Matsushita over a delay in the launch of its new digital camera.

Pentax had planned to use a type of lithium-ion battery from Matsushita for its new digital camera, but the fire at the plant run by Matsushita unit Matsushita Battery Industrial and an ensuing output halt forced Pentax to postpone the launch to February 2008 from November.

Matsushita does not disclose its battery revenue, but its device operations, a segment that includes batteries as well as microchips and other electronic components, posted 1.38 trillion yen in sales in the year ended March 31, accounting for 15 percent of group revenue.