The company will also move part of its marketing department to Thailand "as soon as possible" to deal with the growing demand for home appliances in Asia and the Middle East, a spokeswoman said.

Toshiba aims to double annual sales to the two regions combined to 40 billion yen (360 million dollars) by March 2006, she said.

"Amid the sales growth in Asia and the Middle East, we decided to move part of our marketing department to Thailand so there can be a more direct relationship between production and sales," said Toshiba spokeswoman Midori Suzuki.

Some earlier media reports had incorrectly stated that Toshiba's headquarters was moving to Thailand, she said.

Thai production of refrigerators is targeted to expand by 50 percent to 1.2 million units per year, while output of washing machines is to double to 1.0 million annually, both by March 2006, Suzuki said.

Toshiba employs some 12,000 workers in Thailand but the company said it was not likely to increase the number significantly.

The electronics giant said earlier this month it would lose a net 25 billion yen in the six months to September on sales of 2.60 trillion yen due to its poorly performing personal computer business.

The company pledged to cut costs by boosting output in China and the Philippines.

SPACE.WIRE