Matsushita, the world's largest consumer electronics company, is considering increasing production of MiniDisc systems, the miniaturised compact discs with a recording facility, by opening a factory in Europe.

It has yet to finalise its plans, or to select a site, but it has tentatively scheduled the start of European production for next year.

MiniDisc got off to a slow start after its commercial launch in the early 1990s, but sales have increased sharply over the past year as hardware prices have fallen and more pre-recorded software has become available.

Matsushita's decision to step up production affirms that MiniDisc is now regarded as a successful product with mainstream appeal within the consumer electronics industry.