Panasonic has expanded production at its plasma display panel factory to full capacity, the company said.

The increase more than doubles monthly production at the plant in Amagasaki, west Japan, from 125,000 panels to 285,000 panels. The plant is operated by Matsushita Plasma Display Panel, a joint venture with Toray Industries, in which Panasonic holds a 75% stake.

Combined with production at plants in Ibaraki, north of Tokyo, and Shanghai, China, Panasonic's total monthly production of plasma display panels is now around 460,000 units.

Panasonic originally intended to hit full capacity in July so the upgrade is slightly ahead of schedule.

Demand from consumers for flat-panel televisions is strong and competition is fierce among TV makers. In the first quarter of this year worldwide plasma TV shipments were 1.7 million, an increase of 87% from the same period a year earlier, according to DisplaySearch.

As a result many screen makers are investing in new production lines to keep up with demand. Last year Panasonic announced plans to build a fourth production line in Amagasaki. The $1.5 billion line is scheduled to begin production in July 2007 and hit full capacity in March 2009.

The IDG News Service is a Network World affiliate.