Two leading Japanese technology companies have said they will invest 60bn yen (�327m; $477m) in a new plasma display factory.

The new factory is set to boost the two firms' production of large flat panel TVs from 20,000 to 100,000 per month.

Matsushita Electric Industrial, which makes Panasonic and Technics electronics equipment, and the synthetic fibre maker Toray Industries said their new Osaka plant should be up and running in April 2004.

The companies predicted that the global demand for flat panel plasma screens is set to exceed four million by 2005.

Tough competition

Matsushita is set to produce 1.2 million plasma screens a year in Japan and a further 300,000 in Shanghai.

This would make the company the leading producer in the world, though the competition is also gearing up their production facilities.

Its competitors include Pioneer and a joint venture between Fujitsu and Hitachi.