Japan-based appliance maker Panasonic plans to return most of its production in China to Japan beginning spring, due to higher labor costs in China and a weaker yen.

On Tuesday, Kyodo News quoted Panasonic President Kazuhiro Tsuga as saying the company will produce washing machines and other home appliances in Japan and sell locally made products to overseas markets.

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The company targets to export some 40 kinds of home appliances rolling out of local factories to Asian markets.

After nearly four decades of appliance production in China, Panasonic has three plants in Guangzhou, Hangzhou and Shanghai.

The plan would be the first major move to return the company's foreign production to Japan.

Higher labor costs in China are also sending Japanese factories packing, said Su Liang, the China Home Appliance Research Institute's branding director.

Panasonic declined to disclose where the factories are located but washing machines and microwave ovens will be the first products returned to factories in Japan, particularly in Kobe and Shizuoka prefecture.

Panasonic joins several other Japan-based companies moving production back home.

The company said a one yen drop against the U.S. dollar eats into profits by more than $15 million yearly. If the yen settles at 120 to the dollar, it will still cut profits even with lower costs, the Yomiuri Shimbun reported.